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Solve a-d please. Recording a Change in Estimate, an Error Correction, and a Change in Accounting Principle On December 31, Year 4. Alexa Company is
Solve a-d please.
Recording a Change in Estimate, an Error Correction, and a Change in Accounting Principle On December 31, Year 4. Alexa Company is preparing adjusting entries for its annual year-end. The following issues confront the company 1. Equipment #101 with a cost of 530.800 was purchased three years earlier on january 1, Year 2 . it is being depreciated on a straight-line basis over an estimated Useful life of 10 years with no residual value. At December 31 , Year 4 , it has been determined that the estimated total useful life is 6 years instead of 10 . 2. Equipment \$502 with a cost of $18,200 was purchased four years earlier on January 1 , Year 1 , it is being depreciated on a straighe-line basis over an estimated useful life of seven years with no residual value. At December 31 , Year 4 , it was discovered that no depreciation had been recorded on this equipment for Year T or Year 2 , but it was recorded for Year 3 . 3. In Year 4. Alexa decided to change inventory methods from the weighted-average method to the fiFO method. Net income reported inyear 3 appining the weighted-average method was $380,000, if FFO had been applied in Year 3 , net income would have been $404,000. a. For equipment #101, provide the required adjusting entry for depreciation expense at December 31 , Year 4. - Note: Round answers to the nearest whole dollar. 6. For equipinent a 502 , provide the required adjusting entry for depreciation expense at December 31, Yest it. c. For equipment #502, provide any necessary correcting entry. Ignore income taxes. d. In reporting comparative income statements in Year 4 , what net income amount is presented for Year 3 Step by Step Solution
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