Ayayai Company purchased a new machine on October 1, 2020, at a cost of $114,400. The company estimated that the machine will have a salvage value of $14,400. The machine is expected to be used for 10,000 working hours during its 5-year life.

Compute the depreciation expense under straight-line method for 2020.

All assets are depreciated by the straight-line method. Sheffield Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terrys proposed changes.

Compute the revised annual depreciation on each asset in 2020.

Building

Warehouse

Revised annual depreciation$

$

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Prepare the entry to record depreciation on the building in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

Type of Asset

Acquired

Cost

1/1/20

Old

Proposed

Old

Proposed

Building1/1/14$830,000$117,9004050$44,000$60,900Warehouse1/1/15103,00019,40025206,0008,600 All assets are depreciated by the straight-line method. Sheffield Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terrys proposed changes.

Compute the revised annual depreciation on each asset in 2020.

Building

Warehouse

Revised

Prepare the entry to record depreciation on the building in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31