The following Equipment and Accumulated Depreciation

accounts appear in the #4999

The following Equipment and Accumulated Depreciation accounts appear in the general ledger
of the Sadler Corporation at December 31, 2016.The company uses the ½ year rule to calculate
depreciation expense in the years of acquisition and disposal. At the time of purchase, the
equipment had an estimated useful life of ten years with no residual value. The straight-line
method of depreciation is used. On January 1, 2017, it was estimated that the equipment would
last only four more years (to December 31, 2020).Required:1. Calculate the depreciation
expense for 2017.2. Prepare the journal entry to record 2017 depreciation expense.3. Post the
accumulated depreciation part of the entry in 2 above to the general ledger and calculate the
new balance in the account.4. How much should the depreciation amount have been in each
year if the actual four-year useful life of the equipment had been known in 2016?5. Given the
substantial difference between the depreciation amounts in 2016 and 2017, is the information
conveyed to the reader of Sadler Corporation's 2017 financial statements reasonable?View
Solution:
The following Equipment and Accumulated Depreciation accounts appear in the

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