Steve White the New Controller of Weinberg Company, Has Reviewed

question 246

Essay

Steve White the new controller of Weinberg Company, has reviewed the expected useful lives and residual values of selected depreciable assets at the beginning of 2014. His findings are as follows. All assets are depreciated by the straight-line method. Weinberg Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Steve's proposed changes.
Instructions
(a) Compute the revised annual depreciation on each asset in 2014. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in 2014.

Understand dividend calculation and its impact on stock valuation.

Be familiar with the process of analyzing asset turnover ratio and its impact on company performance.

Develop skills in preparing and analyzing comprehensive income statements.

Understand the importance of management discussion and analysis (MD&A) in corporate reporting.

---

Definitions:

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.

Future Cash Flows

The projected income and expenditures that a company expects to generate over a forthcoming period.

Legal Documents

Official papers that indicate agreement to terms, rights, and responsibilities, enforceable by law.

Collateralized

Secured by an asset or property as a guarantee to repay a loan.