Required information (The following information applies to the questions displayed below.] Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods (S in thousands). LIFO Pre-2020 2020 FIFO $2,960 830 $3,790 Average Cost $2.700 520 $3,220 580 $3,020 3. Assume that Weihrich used FIFO before 2021, and then in 2021 decided to switch to LIFO cost. Weihrich's records of inventory purchases and sales are not available for several previous years. Therefore, the pre-2020 LIFO information ($2.440) is not available. However, Weihrich does have the information needed to apply LIFO on a prospective basis beginning in 2020. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) Required information (The following information applies to the questions displayed below) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Required information [The following information applies to the questions displayed below.) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600. 2. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-the-years-digits method instead of the straight line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.) Required information (The following information applies to the questions displayed below.] Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods (S in thousands). LIFO Pre-2020 2020 FIFO $2,960 830 $3,790 Average Cost $2.700 520 $3,220 580 $3,020 3. Assume that Weihrich used FIFO before 2021, and then in 2021 decided to switch to LIFO cost. Weihrich's records of inventory purchases and sales are not available for several previous years. Therefore, the pre-2020 LIFO information ($2.440) is not available. However, Weihrich does have the information needed to apply LIFO on a prospective basis beginning in 2020. Prepare the journal entry to record the change in accounting principle. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) Required information (The following information applies to the questions displayed below) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Required information [The following information applies to the questions displayed below.) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600. 2. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-the-years-digits method instead of the straight line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.)
