Kathleen Cole Inc. acquired the following assets in January of 2005.
Equipment, estimated service life, 5 years; salvage value, $15,000 ........$525,000 Building, estimated service life, 30 years; no salvage value ...........$693,000 The equipment has been depreciated using the sum-of-the-years-digits method for the first 3 years for financial reporting purposes. In 2008, the company decided to change the method of computing depreciation to the straightline method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. Instructions (a) Prepare the general journal entry to record depreciation expense for the equipment in 2008. (b) Prepare the journal entry to record depreciation expense for the building in 2008. (Round all computations to two decimal places.)
1 Comment
Jack Rogers
5/15/2017 09:37:17 pm
The depreciation expense was difficult because i had no practice solving this and the journal entries also. I searched for help and found a good solution to submit my completed assignment. Students like me will also get benefit from this :) http://www.solutioninn.com/kathleen-cole-inc-acquired-the-following-assets-in-january-of
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