In an examination of Juan Acevedo Corporation as of December 31, 2008, you have learned that the

Question:

In an examination of Juan Acevedo as of December 31, 2008, you have learned that the following situations exist. No entries have been made in the accounting records for these items.
1. The erected its present factory building in 1993. Depreciation was calculated by the straight-line method, using an estimated useful life of 35 years. Early in 2008, the board of directors conducted a careful survey and estimated that the factory building had a remaining useful life of 25 years as of January 1, 2008.
2. When calculating the accrual for officers’ salaries at December 31, 2008, it was discovered that the accrual for officers’ salaries for December 31, 2007, had been overstated.
3. On December 15, 2008, Acevedo declared a 1% on its outstanding, payable February 1, 2009, to the common stockholders of record December 31, 2008.

Instructions
Describe fully how each of the items above should be reported in the of Acevedo for the year 2008.

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