Answer:
Journal:
Dec. 31, 2022:
Debit Depreciation Expense $18,600
Credit Accumulated Depreciation $18,600
To record depreciation expense for the year.
Explanation:
a) Depreciation charge for each of the 3 years, calculated as ($190,000 - $22,000)/10 = $16,800
2019: $16,800
2020: $16,800
2021: $16,800
Accumulated Depreciation to date = $50,400 ($16,800*3)
b) Book Value on January 1, 2022 = $139,600 ($190,000 - $50,400)
c) New Depreciation charge from 2022 = $18,600 ($139,600 - $28,000) /6 years, the remaining useful life based on the revised estimate.
d) There is adjusting journal entry. Depreciation is an estimate based on judgement and past events. Judgement can change to address current events. So, there is no need adjusting the entries for the previous three years.
