Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 11-11 error correction; change in deprecia

Problem 11-11 Error correction; change in depreciation method [LO11-2, 11-6, 11-7] Collins Corporation purchased office...

50.1K

Verified Solution

Question

Accounting

image

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 cost figure included the following expenditures: Purchase price Freight charges Installation charges Annual maintenance charge Total $1,930,000 38,000 28,000 120,000 $2,116,000 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 2016 and 2017. In 2018, after the 2017 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company's controller discovered that the original cost of the 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 2018 2. Ignoring income taxes, prepare any 2018 journal entry(s) related to the change in depreciation methods

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Bacterial Quorum Sensing, Pathogenicity Islands, and Secretion Systems 1.bacterial quorum sensing may play a role in pathogenicity by: a)...

General Management
1.2K views

Intervention •What is intervention? •What is intervention in stress management? •Coping with a stressor •Model of stress •Setting Up Roadblocks •Comprehensive...

Accounting
1.2K views

Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related...

Physics
1.2K views

Which among the following statement is incorrect regarding a uniform spherical shell Inside the shell...

Basic Math
1.2K views

Use your graphing calculator to solve over the interval C 20 cos 20 2 2

Statistics
1.2K views

The CDC reports that there were 3 855 500 births in the United States for...

Algebra
1.2K views

Your credit card billing cycle is 10 days You started your billing cycle with a...

Accounting
1.2K views

Use of the retail inventory method requires taking a physical count of inventory. True False

Accounting
1.2K views

Return to question ! Required information [The following information applies to the questions displayed...

Accounting
1.2K views

Detmer Holdings AG of Zurich, Switzerland, has just introduced a new fashion watch for which...

Accounting
1.2K views

Using your spreadsheet from Part 1, assume the following information and change your spreadsheet setup...

Accounting
1.2K views

Thermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has...