Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance. View transaction list Journal entry worksheet < A B с Record depreciation for the first year under straight-line. Transaction 1 Note: Enter debits before credits. General Journal Debit Credit

Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance. View transaction list Journal entry worksheet < A B с Record depreciation for the first year under straight-line. Transaction 1 Note: Enter debits before credits. General Journal Debit Credit

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Description: Equipment costing $36,000 with a 4-year useful life and an estimated $6,000 salvage value is acquired and startedoperating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 unitsin the first

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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A machine costing $25,625 with a five-year life and $1,500 residual value was purchased on January 2, Compute depreciation for each of the five years, using the double- declining-balance method. 1. Year 1 2. Year 2 3. Year 3 4. Year 4 5. Year 5
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Supplies 1,400 f. Equipment was purchased on January 1 of this year at a cost of $60,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this vear and then determine the equipment's book value Journal Entry Accounts Debit Credit Depreciation Expense-Equipment Accumulated Depreciation-Equipment 60.000 f. 60,000 (? Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear All Check Answer 11:17 PM P Type here to search 9/14/2020 insert esc & #3 %24 backspace 8. Q tab Jock G. K pause NE M. alt ctri alt 1.
Cost of asset: $11,000 Estimated Useful life: 10 years Estimated Total Units of activity : 5000 units Estimated Salvage value: $1000 Units of Production in Year 1:100 units Units of Production in Year 2:500 units Units of Production in Year 3: 800 units Units of activity method: Net Book Value at the end of year 3 is $