AICPA Released Task-Based Simulation
On January 1, Year 1, WSM Co. purchased office furniture at a cost of $90,000. Book depreciation was calculated using the double-declining balance method over an estimated useful life of 10 years for the first three years after purchase, and accumulated depreciation at December 31, Year 3, was $43,920. At the end of Year 3, the estimated useful life of the machinery was changed from 10 to 15 years, effective January 1, Year 4, and the depreciation method was changed to the straight-line method with no salvage value.
For the situations below, record the appropriate journal entries.
To prepare each entry:
•Double-click in the shaded cells in the Account name column and select from the list provided the appropriate account name. If no entry is needed, select “No entry required.” An account may be used once, or not at all for each entry.
•Enter the corresponding debit or credit amount in the appropriate column.
•Round all amounts to the nearest dollar.
•All rows may not be required to complete each entry.