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b) Property, Plant, & Equipment (2020) Equipment Less: Accumulated depreciation

b) Property, Plant, & Equipment (2020) Equipment Less: Accumulated depreciation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need help on b. How to show this on a balance sheet in excel. 

### Depreciation Homework #### Question 1 On January 1, 2018, Mendoza Construction purchased a laser-guided saw for $9,375,000. It costs an additional $125,000 to deliver, install, and calibrate the saw. This machine has a service life of 5 years, at which time it is expected that the device will be disposed of for $100,000 salvage value. Mendoza Construction uses the straight-line depreciation method. **In Excel:** a) Prepare a schedule showing annual depreciation expense and accumulated depreciation. b) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, 2020. **Tabular Schedule Example:** | Year | Annual Depreciation Expense | Accumulated Depreciation at End of Year | |------|------------------------------|-----------------------------------------| | 2018 | | | | 2019 | | | | 2020 | | | | 2021 | | | | 2022 | | | **Balance Sheet Example:** **Property, Plant, & Equipment (2020)** - Equipment: - Less: Accumulated Depreciation Use the information given for the straight-line depreciation calculation: - Initial cost: $9,375,000 + $125,000 = $9,500,000 - Salvage value at the end of 5 years: $100,000 - Depreciable amount: $9,500,000 - $100,000 = $9,400,000 - Annual Depreciation Expense: $9,400,000 / 5 years = $1,880,000 So the filled table would be: | Year | Annual Depreciation Expense | Accumulated Depreciation at End of Year | |------|------------------------------|-----------------------------------------| | 2018 | $1,880,000 | $1,880,000 | | 2019 | $1,880,000 | $3,760,000 | | 2020 | $1,880,000 | $5,640,000 | | 2021 | $1,880,000 | $7,520,000 | | 2022 | $1,880,000 | $9,400,000 | **Property, Plant,
Transcribed Image Text:### Depreciation Homework #### Question 1 On January 1, 2018, Mendoza Construction purchased a laser-guided saw for $9,375,000. It costs an additional $125,000 to deliver, install, and calibrate the saw. This machine has a service life of 5 years, at which time it is expected that the device will be disposed of for $100,000 salvage value. Mendoza Construction uses the straight-line depreciation method. **In Excel:** a) Prepare a schedule showing annual depreciation expense and accumulated depreciation. b) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, 2020. **Tabular Schedule Example:** | Year | Annual Depreciation Expense | Accumulated Depreciation at End of Year | |------|------------------------------|-----------------------------------------| | 2018 | | | | 2019 | | | | 2020 | | | | 2021 | | | | 2022 | | | **Balance Sheet Example:** **Property, Plant, & Equipment (2020)** - Equipment: - Less: Accumulated Depreciation Use the information given for the straight-line depreciation calculation: - Initial cost: $9,375,000 + $125,000 = $9,500,000 - Salvage value at the end of 5 years: $100,000 - Depreciable amount: $9,500,000 - $100,000 = $9,400,000 - Annual Depreciation Expense: $9,400,000 / 5 years = $1,880,000 So the filled table would be: | Year | Annual Depreciation Expense | Accumulated Depreciation at End of Year | |------|------------------------------|-----------------------------------------| | 2018 | $1,880,000 | $1,880,000 | | 2019 | $1,880,000 | $3,760,000 | | 2020 | $1,880,000 | $5,640,000 | | 2021 | $1,880,000 | $7,520,000 | | 2022 | $1,880,000 | $9,400,000 | **Property, Plant,
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