AC 302 Chapter 22 Question 9

AC 302 Chapter 22 Question 9 
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E22-9 (Error and Change in Estimate—Depreciation) Tarkington Co. purchased a machine on 						
January 1, 2009, for		$440,000.00 	At that time it was estimated that the machine would 			
have a	10 	-year life and no salvage value. On December 31, 2012, the firm- 				
accountant found that the entry for depreciation expense had been omitted in 2010. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2012. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment.						
						
						
						
						
Instructions:						
Prepare the general journal entries that should be made at December 31, 2012, to record these events. (Ignore tax effects.)						
						
						
Dec 31, 12	Account title				Amount	
	Account title					Amount
	Text entry as appropriate					
						
	Cost of Machine					Amount
	Less: Depreciation prior to 2012					
		Sum-of-the-years’-digits depreciation				
		2009	Formula		Formula	
		2010	Formula		Formula	
		2011	Formula		Formula	Formula
	Book Value at January 1, 2012					Formula
						Number
	Depreciation for 2012:					Formula
						
Dec 31, 12	Account title				Amount	
	Account title					Amount
	Text entry as appropriate