Billings Corporation purchased a wood pulp mixer for $17,288. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260. Prepare a depreciation schedule using the sum-of-the-years' digits method. Billings CorporationSYD Depreciation Schedule—Wood Pulp Mixer Year Total Depreciation ($) ✕ Depreciation Rate Fraction = Annual Depreciation ($) Accumulated Depreciation ($) Book Value ($) $17,752 (new) 1 $ ✕ = $ $ $ 2 $ ✕ = $ $ $ 3 $ ✕ = $ $ $ 4 $ ✕ = $ $ $ 5 $ ✕ = $ $ $ 6 $ ✕ = $ $ $ 7 $ ✕ = $ $ $
Billings Corporation purchased a wood pulp mixer for $17,288. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260. Prepare a depreciation schedule using the sum-of-the-years' digits method. Billings CorporationSYD Depreciation Schedule—Wood Pulp Mixer Year Total Depreciation ($) ✕ Depreciation Rate Fraction = Annual Depreciation ($) Accumulated Depreciation ($) Book Value ($) $17,752 (new) 1 $ ✕ = $ $ $ 2 $ ✕ = $ $ $ 3 $ ✕ = $ $ $ 4 $ ✕ = $ $ $ 5 $ ✕ = $ $ $ 6 $ ✕ = $ $ $ 7 $ ✕ = $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Billings Corporation purchased a wood pulp mixer for $17,288. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260.
Prepare a depreciation schedule using the sum-of-the-years' digits method.
Billings CorporationSYD Depreciation Schedule—Wood Pulp Mixer
| Year | Total Depreciation ($) | ✕ | Depreciation Rate Fraction | = | Annual Depreciation ($) | Book Value ($) | |
|---|---|---|---|---|---|---|---|
| $17,752 (new) | |||||||
| 1 | $ | ✕ | = | $ | $ | $ | |
| 2 | $ | ✕ | = | $ | $ | $ | |
| 3 | $ | ✕ | = | $ | $ | $ | |
| 4 | $ | ✕ | = | $ | $ | $ | |
| 5 | $ | ✕ | = | $ | $ | $ | |
| 6 | $ | ✕ | = | $ | $ | $ | |
| 7 | $ | ✕ | = | $ | $ | $ |
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