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Tracy Ltd. purchased a piece of equipment on lanuary 1, 2013, for $1,410,000, A that time, it was estimated that the machine would have a
Tracy Ltd. purchased a piece of equipment on lanuary 1, 2013, for $1,410,000, A that time, it was estimated that the machine would have a 15-year life and no residual value. On December 31. 2017, Tracy's controller ound that the entry for depreciation expense was omitted in error in 2014. In addition, Tracy planned to switch to double-dedining-balance depreciation because of a change in the pattern of benefits received, starting with the year 2017 Tracy currently uses the straight-line method for depreciating equipment. Prepare the general journal entries, if any, the accountant should make at December 31, 2017. (Ignore tax effects.) (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 tities and enter 0 for the amounts. Round the rate of deprecition under double decling balance method to 5 decimal places, ie. 13.33333%.) Date Account Tides and Explanation Debit Credit Dec. 31, 2017 To correct for the omission of depreciation expense in 2014.) Dec. 31, 2017 (To adjust for change in depreciation method.) Dec. 31, 2017 (To record adjusting entry for deprecdation.) Prepare the general ]ournal entries, if any, the accountant should make at December 31, 2017 Factor in tax effects. The company has269 tax rate for 2013 to 2017 Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "Mo Entry" for the account titles and enter for the amounts. Round the rate of deprecition under double decling balance method to 5 decimal places, ie. 13.33333%.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 To correct for the omission f depreciation expense in 2014.) Dec. 31, 2017 (To adjust for change in depredation method.) Dexc. 31, 2017
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