The Collins Corporation purchased office equipment at the beginning of 2022 and capitalized a cost...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The Collins Corporation purchased office equipment at the beginning of and capitalized a cost of $ This cost included the following expenditures: Purchase price $ Freight charges Installation charges Annual maintenance charge Total $ The company estimated an eightyear useful life for the equipment. No residual value is anticipated. The doubledecliningbalance method was used to determine depreciation expense for and In after the financial statements were issued, the company decided to switch to the straightline depreciation method for this equipment. At that time, the companys controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment. Required: & Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in and any journal entries related to the change in depreciation methods. Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.
The Collins Corporation purchased office equipment at the beginning of and capitalized a cost of $ This cost included the following expenditures:
Purchase price $
Freight charges
Installation charges
Annual maintenance charge
Total $
The company estimated an eightyear useful life for the equipment. No residual value is anticipated. The doubledecliningbalance method was used to determine depreciation expense for and
In after the financial statements were issued, the company decided to switch to the straightline depreciation method for this equipment. At that time, the companys controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.
Required:
& Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in and any journal entries related to the change in depreciation methods.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.