Accounting Problem

Instructions

Please Refer to Accounting Question 2 Part 1 & Accounting Question 2 Part 2.png, Use the list of Accounts below to complete the journal entries.

List of Accounts

• ?Accumulated Depletion
• Accumulated Depreciation - Vehicles
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Furniture
• Accumulated Depreciation - Machinery
• Accumulated Depreciation - Vehicles
• Accumulated Impairment Losses - Building
• Accumulated Impairment Losses - Equipment
• Accumulated Impairment Losses - Land
• Accumulated Impairment Losses - Machinery
• Accumulated Impairment Losses - Mine
• Accumulated Impairment Losses - Patents
• Accumulated Impairment Losses - Vehicles
• Allowance for Loss on Write-down of Held for Sale Assets
• Asset Retirement Obligation
• Buildings
• Cash
• Common Shares
• Contribution Expense
• Cost of Goods Sold
• Deferred Revenue - Government Grants
• Depreciation Expense
• Equipment
• Exploration Expense
• Furniture
• Gain on Disposal of Vehicles
• Gain on Disposal of Building
• Gain on Disposal of Equipment
• Gain on Disposal of Furniture
• Gain on Disposal of Machinery
• Gain on Disposal of Vehicle
• Gain on Disposal of Land
• Interest Expense
• Interest Payable
• Inventory
• Investment Property
• Land
• Loss on Disposal of Vehicles
• Loss on Disposal of Building
• Loss on Disposal of Equipment
• Loss on Disposal of Machinery
• Loss on Disposal of Land
• Loss on Disposal of Vehicles
• Loss on Expropriation
• Loss on Impairment
• Loss on Write-down of Held for Sale Assets
• Machinery
• Mineral Resources
• No Entry
• Notes Payable
• Oil Property
• Recovery of Loss from Impairment
• Recovery of Loss from Write-down of Held for Sale Assets
• Repairs and Maintenance Expense
• Retained Earnings
• Revaluation Surplus (OCI)
• Revenue - Government Grants
• Royalty Expense
• Vehicles

Machinery purchased for $39.200 by Ayayai Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $5,000 at the end of that time. Assume straight-line depreciation and that Ayayai Corp. uses IFRS for financial statement purposes. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit CreditRepeat part (b) assuming Ayayai Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $300 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Repeat part (b) assuming Ayayai Corp. uses the double-declining-balance method of depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit