Purchase Solution


Not what you're looking for?

Ask Custom Question

E1-16 Lindy Rig, the new controller of Bellingham Company, has reviewed the expected useful
lives and salvage values of selected depreciable assets at the beginning of 2002. Her findings
are as follows.

Useful Life Accumulated
in Years Salvage Value Type of Date Depreciation
Asset Acquired Cost 1/1/02 Old Proposed Old Proposed
Building 1/1/96 $800,000 $114,000 40 50 $40,000 $70,000
Warehouse 1/1/99 100,000 11,400 25 20 5,000 3,600
All assets are depreciated by the straight-line method. Bellingham Company uses a calendar
year in preparing annual financial statements. After discussion, management has agreed to accept
Lindy's proposed changes.

Instructions Using Microsoft Excel
(a) Compute the revised annual depreciation on each asset in 2002. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in 2002.

Purchase this Solution

Solution Summary

This shows how to compute and prepare entries for annual depreciation.

Purchase this Solution

Free BrainMass Quizzes

This tests some key elements of major motivation theories.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.