On January 1, 2022, Bonita Corporation purchased a building to use as its factory, as well...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2022, Bonita Corporation purchased a building to use as its factory, as well as some equipment in order to manufacture its product. The following information was determined at the time of purchase: Building Equipment Cost $2,460,000 $980,000 Useful Life 20 years 25 years Residual Value $492,000 $98,000 a. Depreciation Double Declining Straight-Line On January 1, 2025, Bonita decided to change the depreciation method for the building to the straight-line method, as a result of a change in the pattern of benefits received. There was no change to the total useful life or the residual value of the building. Bonita also decided that the equipment would have a total useful life of only 13 years, with a residual value of only $53,000. The depreciation method for the equipment did not change. (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. List all debit entries before credit entries.) Prepare the journal entries to record depreciation for the building for 2025. b. Prepare the journal entries to record depreciation for the equipment for 2025. On January 1, 2022, Bonita Corporation purchased a building to use as its factory, as well as some equipment in order to manufacture its product. The following information was determined at the time of purchase: Building Equipment Cost $2,460,000 $980,000 Useful Life 20 years 25 years Residual Value $492,000 $98,000 a. Depreciation Double Declining Straight-Line On January 1, 2025, Bonita decided to change the depreciation method for the building to the straight-line method, as a result of a change in the pattern of benefits received. There was no change to the total useful life or the residual value of the building. Bonita also decided that the equipment would have a total useful life of only 13 years, with a residual value of only $53,000. The depreciation method for the equipment did not change. (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. List all debit entries before credit entries.) Prepare the journal entries to record depreciation for the building for 2025. b. Prepare the journal entries to record depreciation for the equipment for 2025.
Expert Answer:
Answer rating: 100% (QA)
The question provides information about the cost useful life residual value and depreciation methods for a building and equipment purchased by Bonita ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
The following are transactions between Sage Hill Corp., the consignor, and Oriole Stores Ltd., the consignee, for the month of June 2020. Sage Hill uses a perpetual inventory system and has a...
-
On January 1, 2016, Crane Corporation purchased a building to use as its factory, and some equipment to manufacture its product. The following information was determined at the time of purchase: Cost...
-
4. What are the three categories of transactions in the balance of payments? Give an example of each. 5. Economists sometimes say that the current exchange rate system is a dirty float system. What...
-
A hollow aluminum cylinder 20.0 cm deep has an internal capacity of 2.000 L at 20.0C. It is completely filled with turpentine and then slowly warmed to 80.0C. (a) How much turpentine overflows? (b)...
-
Use the given substitutions to show that the equations are valid for 0 < /2. If x = 2 sec , show that x 4 2 tan 0. =
-
In an electric eel, each electrocyte can develop a voltage of \(150 \mathrm{mV}\) for a short time. For a total voltage of \(450 \mathrm{~V}\), how many electrocytes must be connected in series? A....
-
Sweeney originally contributed $175,000 in cash for a one-fourth interest in the Gilbert LLC. During the time Sweeney was a member of the LLC, his share of the LLCs income was $90,000 and he withdrew...
-
From the following class diagram, what is the used design pattern < > Behavior A action10:void Client + doActionA(): void + doActionBO:void Subclass 1 Subclass2 Concrete Behavior A1 + action10:void <...
-
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
-
Uniq Works purchased raw materials amounting to $121,000 on account and $17,000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which...
-
A researcher has jus finished designing and validating a scale meant to measure "employee high-performance potential", which he hopes to monetize and market to organizations. The scale is a 30-item...
-
Consider the program below that gets following keyboard input "computer". .ORIG x3000 AND R1, R1, #0 ADD R1, R1, #8 LD R2, NEGZ LOOP1 LDI R3, KBSR BRzp LOOP1 LDI Re, KBDR ADD R4, RO, R2 BRnz NEXT...
-
1. "Kel" have worked with me before in supply section 2. "Kel" is more of a transactional 3. Discuss examples of the effect of their leadership on your work ethic, job performance, or job...
-
Which item below is the best example of a proposition of fact? O In 2013 college student debt grew larger than credit card debt. I think states should support higher education to reduce tuition. Big...
-
Based upon readings and learning activities within the class lessons, reflect upon specific leadership-related competencies which you possess and leadership competencies where there is an opportunity...
-
81 8 (9) locate the image of an object placed 1.2m from the vertex of gypsy's crystal ball, diameter (n 1.5) not the gypsy) which has a 20-cm Make sketch (of the rays, 9 (D) khat must be the focal...
-
Archangel Corporation prepared the following variance report. Instructions Fill in the appropriate amounts or letters for the question marks in the report. ARCHANGEL CORPORATION Variance...
-
Citigroup Inc. (Citi) is a leading global financial services company with over 200 million customer accounts and operations in more than 140 countries. Its operating units Citicorp and Citi Holdings...
-
Most economists describe three determinants of the interest rates on a borrower's debt: a real interest rate, which is a charge for using capital; an adjustment for expected inflation to insure that...
-
AK Steel is an integrated manufacturer of high-quality steel and steel products in capital intensive steel mills. AK Steel produces flat-rolled carbon, stainless and electrical steel products, and...
-
A guitar player can change the frequency of a string by bending itpushing it along a fret that is perpendicular to its length. This stretches the string, increasing its tension and its frequency. The...
-
The future of work may look very different from how it does today. The economy has had a significant influence on OB in recent years. The gig economy (also known as freelancing) has arisen as a major...
-
Two loudspeakers, 1.0 m apart, emit sound waves with the same frequency along the positive x-axis. Victor, standing on the axis to the right of the speakers, hears no sound. As the frequency is...
Study smarter with the SolutionInn App