Question

Required information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet < 1 > Record depreciation expense for 2024.

          Required information
[The following information applies to the questions displayed below.]
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated
using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1,
2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to
$900.
2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-
balance method instead of the straight-line method.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest whole dollar.
View transaction list
Journal entry worksheet
<
1
>
Record depreciation expense for 2024.

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required information the following information applies to the questions displayed below wardell company purchased a minicomputer on january 1 2022 at a cost of 40000 the computer was depreci 90608

Added by Domingo C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

07/13/2023

Step 1

Cost = $40,000 Residual Value = $4,000 Useful Life = 5 years Annual Depreciation = $\frac{Cost - Residual Value}{Useful Life} = \frac{40000 - 4000}{5} = \frac{36000}{5} = $7,200$ Accumulated Depreciation at the beginning of 2024 (end of 2023) = $7,200 \times 2 = Show more…

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Required information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet < 1 > Record depreciation expense for 2024.

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Transcript

00:01 Hello students, here is a question.

00:02 Machines that produce a cell phone components is purchased on jan 1, 2024 is $117 ,000.

00:10 It is expected to have a useful life of 4 years and residual value of 11 ,000.

00:15 The machinery expected to produce total of 200 ,000 components during the life distributed as follow 40 ,000 in 2024, 50 ,000 in 2025, 60 ,000 in 2026 and 50 ,000 in 2007.

00:28 The company has december 31st year end.

00:31 So we need to calculate the amount of depreciation to be charged using an year.

00:35 So let us start solving this problem under three methods.

00:38 We have to show the depreciation.

00:41 So our first step is to calculate single line method, single line method.

00:52 So it will be depreciation would be the same for all three so annual depreciation is equal to cost minus residual value divided by useful life.

01:22 So that will be 117 ,000 minus 11 ,000 divided by 4.

01:30 So which gives us 1 ,14 ,250.

01:37 So our second method is unit production method.

01:50 So the formula will be depreciation per unit is equal to cost minus residual value divided by useful life, useful life in units.

02:17 So which will be 117 ,000 minus 11 ,000 divided by 200 ,000 which gives us 0 .53.

02:30 So now we have to calculate for four years...

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