Solved

Johnson's Distributing Purchased Equipment on January 1, 2008

Question 64

Essay

Johnson's Distributing purchased equipment on January 1, 2008. The equipment cost $124,000 with a salvage value of $12,000 and an estimated life of 8 years. Initially, Johnson depreciated the equipment using the sum-of-the-years'-digits method. On January 1, 2011, the company elected to change to the straight-line method of depreciation.
Required:
Determine the depreciation expense for 2011 and prepare the appropriate journal entry.

Correct Answer:

verifed

Verified

Accumulated depreciation at 1/1/2011:
blured image ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents