The before$-$tax income for Sheridan Corp. for $2022$ was $$118,200$; for $2023,$ it was $$78,400.$ However, the accountant noted that the

following errors had been made:

Sales for $2022$ included $$38,500$ that had been received in cash during $2022,$ but for which the related products were

delivered in $2023.$ Title did not pass to the purchaser until $2023.$

Ending inventory on December $31,2022,$ was understated by $$8,720.$ The December $31,2023$ ending inventory has not yet

been adjusted to the Inventory account. Assume that Sheridan has a periodic inventory system and that no adjustment has

been made to the opening balance of the Inventory account.

The bookkeeper, in recording interest expense for both $2022$ and $2023$ on bonds payable, made the following entry each

year:

Interest Expense $,15,000$

Cash

$15,000$

The bonds have a face value of $$300,000$ and pay a stated interest rate of $5\%.$ They were issued at a discount of $$15,000$ on

January $1,2022,$ to yield an effective interest rate of $6\%.($Use the effective interest method.$)$

Ordinary repairs to equipment had been charged in error to the Equipment account during $2022$ and $2023.$ In total, repairs

in the amount of $$9,500$ in $2022$ and $$9,300$ in $2023$ were charged in this way. The company uses the declining$-$balance

method and applies a rate of $10\%$ in determining its depreciation charges.

Sheridan applies IFRS.

QUESTION TO BE ANSWERED: On December $31,2023,$ before the books were closed, management and the accountant at Blossom Inc. made the following

determinations about three depreciable assets:

Depreciable asset $A($building$)$ was purchased on January $2,2020.$ It originally cost $$545,000$ and the straight$-$line method

was chosen for depreciation. The asset was originally expected to be useful for $10$ years and have no residual value. In $2023$

the decision was made to change the depreciation method from straight$-$line to double$-$declining$-$balance due to a change in

the pattern of benefits received. The estimates relating to useful life and residual value remained unchanged.

Depreciable asset $B($machinery$)$ was purchased on January $3,2019.$ It originally cost $$207,000$ and the straight$-$line method

was chosen for depreciation. The asset was expected to be useful for $15$ years and have no residual value. In $2023,$ the

was chosen for depreciation. The asset was expected to be useful for $15$ years and have no residual value. In $2023$ decision was made to shorten this asset's total life to nine years and to estimate the residual value at $$3,500.$

Depreciable asset $C($equipment$)$ was purchased on January $5,2019.$ The asset's original cost was $$160,000$ and this amount

was entirely expensed in $2019$ in error. This particular asset has a $10-$year useful life and no residual value. The straight$-$line

method is appropriate.

The accountant mentioned that the corporation was experiencing a higher than expected number of bad debt write$-$offs in the current

year. For this reason, the bad debts percentage of accounts receivable used in the year$-$end adjustment was changed from $6\mathrm{.}5\%$ to $8\%$

The loss on impaiment for the current year was calculated using the new rate of $8\%.$ The controller estimates that, if the new rate had

been used in the past, an additional $$15,000$ worth of bad debts would have been recorded.

Additional information:

Income in $2023$ before depreciation expense amounted to $$415,000.$

Depreciation expense on assets other than A$,$ B$,$ and C totalled $$68,700$ in $2023.$

Income in $2022$ was reported at $$374,000$

In both $2022$ and $2023,100,000$ common shares were outstanding. No dividends were declared in either year.

Blossom follows IFRS.

Answer the following questions, ignoring all income tax effects:

$($a$)$

Your answer is partially correct.

Prepare any necessary entries in $2023.($List all debit entries before credit entries. Credit account titles are automatically indented when

the 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.

Round answers to $0$ decimal places, e$.$g$.5,275.$ Round the rate of depreciation under double$-$declining$-$balance method to $1$ decimal place,

ie$.13\mathrm{.}3\%.)$

No$.$ Account Titles and Explanation

Debit

Credit

Depreciation Expen

V