Pharoah Co. purchased a machine on January 1, 2023, for $533,500. At that time, it was estimated that the machine would have a 10- year life and no salvage value. On December 31, 2026, the firm's accountant found that the entry for depreciation expense had been omitted in 2024. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation. starting with the year 2026. At present, the company uses the sum-of-the-years-digits method for depreciating equipment. Prepare the general journal entries that should be made at December 31, 2026, to record these events. (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 titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, 2026 Debit Credit Dec. 31, 2026 (To correct for the omission of depreciation expense in 2024) (To record depreciation expense for 2026)

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Pharoah Co. purchased a machine on January 1, 2023, for $533,500. At that time, it was estimated that the machine would have a 10-
year life and no salvage value. On December 31, 2026, the firm's accountant found that the entry for depreciation expense had been
omitted in 2024. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation.
starting with the year 2026. At present, the company uses the sum-of-the-years-digits method for depreciating equipment.
Prepare the general journal entries that should be made at December 31, 2026, to record these events. (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 titles and enter O for the amounts. List all debit entries before credit entries.)
Date Account Titles and Explanation
Dec. 31,
2026
Debit
Credit
Dec. 31,
2026
(To correct for the omission of depreciation expense in
2024)
(To record depreciation expense for 2026)
Transcribed Image Text:Pharoah Co. purchased a machine on January 1, 2023, for $533,500. At that time, it was estimated that the machine would have a 10- year life and no salvage value. On December 31, 2026, the firm's accountant found that the entry for depreciation expense had been omitted in 2024. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation. starting with the year 2026. At present, the company uses the sum-of-the-years-digits method for depreciating equipment. Prepare the general journal entries that should be made at December 31, 2026, to record these events. (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 titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec. 31, 2026 Debit Credit Dec. 31, 2026 (To correct for the omission of depreciation expense in 2024) (To record depreciation expense for 2026)
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