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Recording and Reporting a Change in Estimated Useful Life (Vear 4 and Year 5...

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Accounting

Recording and Reporting a Change in Estimated Useful Life
(Vear 4 and Year 5 are presented). Income before depreciation for Year 4 and Year 5 was $74,700 and $79,200, respectively. Ignore income tax
Required
a. Prepare the journal entries to be recorded in Year 1 through Year 4 for annual depreciation
b. Determine the ending balance in accumulated depreciation on December 31 of Year 1 through Year 4.
c. Prepare the entry to record depreciation expense in Year 5, the year of the change.
he change should be reported on the Year 5 balance sheet and income statement, which are accompanied by
Note: 4 results for comparative purposes. Include the earnings per share disclosure. Shares of common stock outstanding are 100,000
b.
Accumulated depreciation, December 31, Year 4$0
c.
d.
Less: Accumulated depreciation
Earnings per share Year 4$
0
0,1
0
=
0=$
0=$
Earnings pershare Year 5
01
0=$ 0=$
Result
image

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