Kawasaki Ltd. shows the following entries in its Equipment account for 2023.

Kawasaki Ltd. shows the following entries in its Equipment account for 2023. All amounts (in yen, in thousands) are based on historical cost.


Instructions

a. Prepare any correcting entries necessary.

b. Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2023 under each of the methods listed below. 

Assume an estimated life of 10 years, with no residual value. The machinery included in the January 1, 2023, balance was purchased in 2021. 

1. Straight-line.

2. Sum-of-the-years’-digits.