Exercise 20-11 (Algo) Change in depreciation methods [LO20-3] The Canliss Milling Company purchased machinery on...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Exercise 20-11 (Algo) Change in depreciation methods [LO20-3] The Canliss Milling Company purchased machinery on January 2, 2019, for $850,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $170,000 in depreciation in 2019 and 2020. Early in 2021, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will Canliss apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any 2021 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare any 2021 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the adjusting entry for depreciation in 2021. Note: Enter debits before credits
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
