Prepare a separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. Current Attempt in ProgressIn recent years, Sheridan Corporation has purchased three machines. Because of frequent employee turnover in the accountingdepartment, a different accountant was in charge of selecting the depreciation method for each machine, and various methods havebeen used. Information concerning the machines is summarized in the table below.Machine123AcquiredJan. 1, 2018July 1, 2019Nov. 1, 2019Cost$101,70077,50065,829ResidualValue$10,9009,1705,960Useful Life(in years)556Depreciation MethodStraight-lineDiminishing-balanceUnits-of-productionFor the diminishing-balance method, Sheridan Corporation uses double the straight-line rate. For the units-of-production method,total machine hours are expected to be 26,030. Actual hours of use in the first 3 years were: 2019, 410; 2020, 4,940; and 2021, 5,440. Year2018 $2019202020212022Machine 2: Diminishing-balance depreciationYear2019 $2020202120222023YearMachine 3: Units-of-production depreciation2019DepreciableAmount20202021Carrying AmountBeg. of YearUnits-of-ProductioneTextbook and Media$Calculation.DepreciationRateDepreciationRate%CalculationDepreciationCost/Unit%%%Calculation%%%%%%# ofmonths# ofmonthsDepreciationExpenseDepreciationExpenseDepreciationExpenseAccumulatedDepreciationAccuDeprAccuDeprEnd of Y$

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Description: Prepare a separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. Current Attempt in ProgressIn recent years, Sheridan Corporation has purchased three machines. Because of frequent employee turnov

Depreciation reduces the value of a property over a particular period of time. It is an important…

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Business

Accounting

depreciation schedules for each machine

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

Prepare a separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting.

Current Attempt in Progress
In recent years, Sheridan Corporation has purchased three machines. Because of frequent employee turnover in the accounting
department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have
been used. Information concerning the machines is summarized in the table below.
Machine
1
2
3
Acquired
Jan. 1, 2018
July 1, 2019
Nov. 1, 2019
Cost
$101,700
77,500
65,829
Residual
Value
$10,900
9,170
5,960
Useful Life
(in years)
5
5
6
Depreciation Method
Straight-line
Diminishing-balance
Units-of-production
For the diminishing-balance method, Sheridan Corporation uses double the straight-line rate. For the units-of-production method,
total machine hours are expected to be 26,030. Actual hours of use in the first 3 years were: 2019, 410; 2020, 4,940; and 2021, 5,440.

Year
2018 $
2019
2020
2021
2022
Machine 2: Diminishing-balance depreciation
Year
2019 $
2020
2021
2022
2023
Year
Machine 3: Units-of-production depreciation
2019
Depreciable
Amount
2020
2021
Carrying Amount
Beg. of Year
Units-of-
Production
eTextbook and Media
$
Calculation.
Depreciation
Rate
Depreciation
Rate
%
Calculation
Depreciation
Cost/Unit
%
%
%
Calculation
%
%
%
%
%
%
# of
months
# of
months
Depreciation
Expense
Depreciation
Expense
Depreciation
Expense
Accumulated
Depreciation
Accu
Depr
Accu
Depr
End of Y
$

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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Step 3: Preparation of depreciation schedule for machine 2 using diminishing balance method

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From the following information prepare adjusting entries in the general journal and enter them in the work sheet. Plant and equipmentto be depreciated are composed of the following: Assets Date Acquired cost estimatedusage or life salvage value depreciation method Building 7/1/2014 $306,000 25 years $20,000 sum-of-years' digits Truck #1 4/1/2014 28,000 60,000 miles 3,100 miles driven Truck #2 9/1/2015 33,000 60,000 miles 4,200 miles driven Lift Truck #1* 8/17/2011 7,900 10 years 900 straight-line Lift Truck #2 3/29/2015 4,500 10 years 500 straight-line Lift Truck #3 9/16/2016 5,000 10 years 500 straight-line Office Equipment 7/1/2016 32,800 7 years 2,000 straight-line Computer 12/19/2018 7,600 4 years 1,600 Double-decling *sold 12/31/18 Truck No. 1has been driven 45,000 miles prior to 1/1/18 and truck No. 2 has been driven 30,500 miles prior to 1/1/18. During 2018 truck No. 1 was driven 12000 miles and truck No. 2 was driven 16000 miles. Remember…
"The Company records equipment at cost. Depreciation is recorded on a straight-line basis over the equipment's estimated useful life, which is currently estimated to be ten years." The equipment is computer, I want to know 10 years Depreciable Life is reasonable or not under GAAP, Are there any clear regulations?
Please answer please help me
Not previously answered.
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