Quinlan Corporation purchased Equipment for $60,000 on January 1, 2018. It was depreciated based on a seven-year
Question:
Quinlan Corporation purchased Equipment for $60,000 on January 1, 2018. It was depreciated based on a seven-year life and an $18,000 residual value. On January 1, 2020, Quinlan revised these estimates to a total useful life of four years and a residual value of $10,000. Prepare Quinlan's entry to record 2020 depreciation expense. Assume that Quinlan follows IFRS and uses straight-line depreciation.
Step by Step Answer:
Depreciation Expense 19000 Accum...View the full answer
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
Quinlan Corporation purchased a computer system (accounted for as Office Equipment) for $60,000 on January 1, 2015. It was depreciated based on a seven-year life and an $18,000 residual value. On...
-
Corning Corporation purchased a computer system for $60,000 on January 1, 2010. It was depreciated based on a seven-year life and an $18,000 residual value. On January 1, 2012, Corning revised these...
-
Corning Corporation purchased a computer system (accounted for as Office Equipment) for $60,000 on January 1, 2012. It was depreciated based on a seven-year life and an $18,000 residual value. On...
-
Let (x, y) = x 4 2x 2 + y 2 6y. (a) Find the critical points of and use the Second Derivative Test to determine whether they are a local minima or a local maxima. (b) Find the minimum value of ...
-
(a) Give IUPAC substitutive names for the seven isomeric aldehydes and ketones with the formula C5H10O. (b) Give structures and names (common or IUPAC substitutive names) for all the aldehydes and...
-
What are abstract methods? Describe the circumstances in which an abstract method would be appropriate.
-
Let \(p(t)\) be the probability of survival from 0 to \(t\). The probability of surviving to \(s\) given survival to \(t\) is then \[p(s \mid t)=\frac{p(s)}{p(t)}\] Let...
-
A popular product of Loring Glassworks is a hand-decorated vase. The companys standard cost system calls for 0.75 hours of direct labor per vase, at a standard wage rate of $8.25. During September,...
-
Related Information: Lease term 1 years ( 1 2 monthly periods ) Monthly lease payments $ 5 2 , 0 0 0 on January 1 , 2 0 2 4 , through December 1 , 2 0 2 4 . Economic life of asset 5 years Interest...
-
Suppose that the evolving star is the same size as our Sun at the start of the animation. The white dwarf, meanwhile, is only about as large as the Eartheven though it may have two-thirds or...
-
Golden Properties Corporation purchased a parcel of land in March 2019 for $1 million with the intent to construct a building on the property in the near future. At the time of purchase, Golden...
-
Pace Instrument Corp., a small company that follows ASPE, began operations on January 1, 2017, and uses a periodic inventory system. The following net income amounts were calculated for Pace under...
-
What can cause a change in the supply and demand equilibrium?
-
We are the UKs leading home and general merchandise retailer. Argos and Homebase are two of the UKs leading retail brands, with large customer bases across the UK and Ireland. Between them, our...
-
The House of Commons Committee of Public Accounts produced a report on the budget for the London 2012 Olympic and Paralympic Games, to investigate the reasons for budget increases announced by the...
-
(a) Using the information provided in question C12.1, prepare a spreadsheet containing a trial balance, adjustment and resulting figures for income statement (profit and loss account) and statement...
-
In the following extract, the College of Charleston, USA, describes on its website how it estimates the standard cost of attendance in respect of a student. To consider a student for federal...
-
Prepare ledger accounts to report the transactions and events of questions C8.1 and C8.2. Data from C8.1 The Biscuit Manufacturing Company commenced business on 1 January Year 1 with capital of...
-
For 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:...
-
Write electron configurations for the following ions, and determine which have noble-gas configurations: (a) Cd2+ (b) p3- (c) Zr4+ (d) Ru3+ (e) As3- (f) Ag+
-
ZSK Interiors Ltd. guarantees SIL Exterior Co.s $150,000 bank loan. Describe how ZSK will initially account for the guarantee and discuss the nature of the required disclosure.
-
The following are two independent situations. The underlined entity is the reporting entity. 1. Broken Horse Stables Inc. sued Topnotch Equestrian Inc. for $1 million alleging breach of contract....
-
Aaron Robinsons Architecture Ltd. (ARAL) is a private company that reports its financial results in accordance with ASPE. Unfortunately, a three-story apartment building that ARAL designed recently...
-
Given the function. f(x) = ln (2x+3x) Compute f'(x). Enter your answer rounded to the nearest tenth
-
A motor-cycle manufacturing company desires a profit of $600,000. The fixed costs are $800,000. The unit selling price of the motor-cycle is $750 and the variable cost per unit is $680. How many...
-
3. ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected rate of return on the market is 12.5 percent, what is the risk-free...
Study smarter with the SolutionInn App