Grouper Company is in the process of preparing its financial statements for 2017. Assume that no entries for depreciation have been recorded in 2017. The following information related to depreciation of fixed assets is provided to you.

1.		Grouper purchased equipment on January 2, 2014, for $89,100. At that time, the equipment had an estimated useful life of 10 years with a $5,100 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2017, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,800 salvage value.
2.		During 2017, Grouper changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $310,000. It had a useful life of 10 years and a salvage value of $31,000. The following computations present depreciation on both bases for 2015 and 2016.

		2016		2015
Straight-line		$27,900		$27,900
Declining-balance		49,600		62,000

3.

Grouper purchased a machine on July 1, 2015, at a cost of $120,000. The machine has a salvage value of $20,000 and a useful life of 8 years. Groupers bookkeeper recorded straight-line depreciation in 2015 and 2016 but failed to consider the salvage value.

Prepare the journal entries to record depreciation expense for 2017 and correct any errors made to date related to the information provided. (Ignore taxes.) (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.)

Show comparative net income for 2016 and 2017. Income before depreciation expense was $310,000 in 2017, and was $320,000 in 2016. (Ignore taxes.)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Building
• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Machinery
• Advertising Expense
• Amortization Expense
• Allowance for Doubtful Accounts
• Bad Debt Expense
• Cash
• Compensation Expense
• Consignment Out
• Construction in Process
• Copyrights
• Cost of Goods Sold
• Deferred Gross Profit
• Deferred Tax Liability
• Depreciation Expense
• Dividend Revenue
• Due to Customer
• Discount on Bonds Payable
• Equipment
• Equity Investments (Available-for-Sale)
• Equity Investments (Equity Method)
• Fair Value Adjustment
• Finance Expense
• Gain on Disposal of Plant Assets
• Income Tax Receivable
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Inventory on Consignment
• Investment Revenue
• Lawsuit Liability
• Lawsuit Loss
• Loss Due to Market Decline of Inventory
• Machinery
• Maintenance and Repairs Expense
• No Entry
• Prepaid Insurance
• Property, Plant, and Equipment
• Purchases
• Rent Revenue
• Retained Earnings
• Revenue from Investment
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales
• Sales Commission Expense
• Sales Commission Payable
• Sales Revenue
• Sales Tax Expense
• Sales Tax Payable
• Share Capital
• Supplies
• Supplies Expenses
• Trademarks
• Unearned Rent Revenue
• Unrealized Holding Gain or Loss - Equity
• Unrealized Holding Gain or Loss - Income
• Warranty Expense
• Warranty Liability

CHOOSE FROM THE ABOVE ACCOUNT TITLES ONLY

SHOW ALL WORK

DO ALL REQUIRED PARTS IN THE FORMATS PROVIDED

THANK YOU!!!

No. Account Titles and Explanation Debit Credit 2. 3. (To record current year depreciation.) (To correct prior year depreciation.) GROUPER COMPANY Comparative Income Statements For the Years 2017 and 2016 2017 2016 S Income before depreciation expense Depreciation expense Net income