$Asat$ December $31,2023,$ Wildhorse Corporation $is$ having its financial statements audited for the first time ever. The auditor has

found the following items that might have $an$ effect $on$ previous years.

Wildhorse purchased equipment $on$ January $2,2020,$ for $$122,200.At$ that time, the equipment had $an$ estimated useful life

$of10$ years, with $a$ $$9,400$ residual value. The equipment $is$ depreciated $on$ a straight$-$line basis. $On$ January $2,2023,asa$

result $of$ additional information, the company determined that the equipment had a total useful life $of$ seven years with $a$

$$5,640$ residual value.

During $2023,$ Wildhorse changed from the double$-$declining$-$balance method for its building $to$ the straight$-$line method

because the company thinks the straight$-$line method now more closely follows the benefits received from using the assets.

The current$-$year depreciation was calculated using the new method following straight$-$line depreciation. $In$ case the

following information was needed, the auditor provided calculations that present depreciation $on$ both bases. The building

had originally cost $$1\mathrm{.}13$ million when purchased the beginning $of2021$ and has a residual value $of$ $$113,000.Itis$

depreciated over $20$ years. The original estimates $of$ useful life and residual value are still accurate.

Wildhorse purchased a machine $on$ July $1,2020,at$ a cost $of$ $$160,000.$ The machine has a residual value $of$ $$16,000$ and $a$

useful life $of$ eight years. Wildhorse's bookkeeper recorded straight$-$line depreciation during each year but failed $to$ consider

the residual value.

Prior $to2023,$ development costs were expensed immediately because they were immaterial. Due $toan$ increase $in$

development phase projects, development costs have now become material and management has decided $to$ capitalize and

depreciate them over three years. The development costs meet all six specific conditions for capitalization $of$ development

phase costs. Amounts expensed $in2020,2021,$ and $2022$ were $$600,$$$400,$ and $$1,000,$ respectively. During $2023,$ $$4,800$

was spent and the amount was debited $to$ Deferred Development Costs $(an$ asset account$).$ Prepare the necessary journal entries $to$ record each $of$ the changes $or$ errors. The books for $2023$ have been adjusted but not

closed. Ignore income tax effects. $(List$ all debit entries before credit entries. Round answers $to0$ decimal places, $e.g.5,275.$ Credit

account titles are automatically indented when the amount $is$ entered. $Do$ not indent manually. $Ifno$ entry $is$ required, select $"No$ Entry" for

the account titles and enter $0$ for the amounts.$)$

$No.$ Account Titles and Explanation

Debit

Credit

$No$ Entry

Accumulated Depreciation $-$ Machinery

Retained Earnings

Depreciation Expense

Amortization Expense

Deferred Development Costs