Question: Problem 11-11 Error correction; change in depreciation method L011-2, 11-6, 11-7l Collins Corporation purchased office equipment at the beginning of 2014 and capitalized a cost

Problem 11-11 Error correction; change in depreciation method L011-2, 11-6, 11-7l Collins Corporation purchased office equipment at the beginning of 2014 and capitalized a cost of $2,072,000. This cost figure included the following expenditures: $1,910,000 Purchase price Freight charges 36,000 26,000 Installation charges Annual maintenance 100,000 charge Total $2,072,000 The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2014 and 2015. In 2016, after the 2015 financial statements were issued, the company decided to switch to the straight-line depreciation method forthis equipment. At that time, the company's controller discovered that the original cost ofthe equipment incorrectly included one year of annual maintenance charges for the equipment. Required: 1. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet Record the correcting entry for the equipment capitalization error discovered in 2016. General Journal Debit Credit Event 1 Retained earnings Accumulated depreciation Equipment

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Problem 11-11 Error correction; change in depreciation method [LO11-2, 11-6, 11-7] Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,116,000. This...

11-11 (Algo) Error correction; change in depreciation method [LO11-2, 11-6, 11-7] Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,072,000. This...

Problem 1 1 - 1 1 ( Algo ) Error correction; change in depreciation method [ L 0 1 1 - 2 , 1 1 - 6 , 1 1 - 7 ] Collins Corporation purchased office equipment at the beginning of 2 0 1 9 and...

2 Problem 20-11 Error correction; change in depreciation method [LO020-6] The Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,195,000. This cost...

I cannot get this correct. The only thing correct is the JE description on the first one that is RE. Problem 20-11 Error correction; change in depreciation method [LO20-6] The Collins Corporation...

Cannot get correct. Please give help. Problem 20-11 Error correction; change in depreciation method [LO20-6] The Collins Corporation purchased office equipment at the beginning of 2016 and...

Problem 20-11 Error correction; change in depreciation method [LO20-6] The Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,165,000. This cost...

Problem 20-11 Error correction; change in depreciation method [LO20-6] The Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,225,000. This cost...

Problem 20-11 Error correction; change in depreciation method [LO20-6] The Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,180,000. This cost...

2 Problem 20-11 Error correction; change in depreciation method [LO020-6] The Colins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,195,000. This cost...

Draw the starting materials (diene and dienophile) for the preparation of the following compounds. X COOH COOH

The heat of fusion (also called heat of melting), Hfus, of ice is the enthalpy change for H2O(s) H2O(l); Hfus Similarly, the heat of vaporization, Hvap, of liquid water is the enthalpy change for...

Identify the advantages of specialization for toyota and provide specific examples of toyotas trading partners to illustrate.

Employ effective vocal cues Employ effective visual cues

3 Might there be some middle ground? Could you adjust the topic to focus on verifiable facts? For example, you could investigate whether banning dogs would lower the insurance premiums paid by the...

Clearly transitions help to clarify messages and keep them flowing in oral and written forms of communication. But do transitions function similarly in mediated communication contexts? For example,...