On January 1, 2016 Kefauver Company purchased a piece of equipment for $375,000. The equipment had a useful life of 10 years and a residual value of $10,000. The company initially starts recording depreciation on a straight-line method. The following independent situations occur at the beginning of 2018:
a. The life of the equipment was originally estimated to be 10 years but due to the wear and tear on the machine they changed it to a remaining life of 7 years.
b. It was discovered that when initially recorded on the books the residual value had been ignored.
Required:
Prepare all journal entries related to the equipment for 2018 for each of the independent situations, ignoring income taxes.

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The Answer of On January 1, 2016 Kefauver Company purchased a piece of equipment for $375,000. The equipment had a useful life of 10 years and a residual value of $10,000. The company initially starts recording depreciation on a straight-line method. The following independent situations occur at the beginning of 2018:
a. The life of the equipment was originally estimated to be 10 years but due to the wear and tear on the machine they changed it to a remaining life of 7 years.
b. It was discovered that when initially recorded on the books the residual value had been ignored.
Required:
Prepare all journal entries related to the equipment for 2018 for each of the independent situations, ignoring income taxes.

On January 1, 2016 Kefauver Company Purchased a Piece of Equipment