**Depreciation Schedule Assignment****Background Information:**- **Historical cost:** $270,000- **Estimated useful life:** 6 years- **Salvage value:** $24,000- **Estimated useful hours:** 12,000 hours**Estimated hours per year:**- 3,100 hours in 2019- 1,100 hours in 2020- 1,200 hours in 2021- 2,800 hours in 2022- 2,600 hours in 2023- 1,200 hours in 2024**Tasks:**1. **Complete the Depreciation Schedule using the Straight-line Method.** **Schedule Format:** - Adventure Park, Corp. - **Depreciation Schedule - Straight Line Method** | Year | Depreciation Expense | Accumulated Depreciation | Depreciable Cost | |----------|----------------------|--------------------------|------------------| | 12.31.19 | | | | | 12.31.20 | | | | | 12.31.21 | | | | | 12.31.22 | | | | | 12.31.23 | | | | | 12.31.24 | | | |2. **Record the Depreciation Expense for 2020.** **Journal Entry Format:** - **General Journal** | | DR | CR | |------------|-----|-----| | | | |3. **Net Book Value Calculation for 12.31.20:** - **Historical cost:** $270,000 - **(Accumulated depreciation):** - **Net book value at 12.31.20:** This exercise will guide students to calculate depreciation using the straight-line method and accurately record the associated journal entries.

Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Historical cost 270,000 Estimated useful life 6 years Salvage value $ 24,000 12,000 hours Estimated useful hours Estimated hours per year: 3,100 2019 1,100 2020 1,200 2021 2,800 2022 2,600 2023 1,200 2024 Required Complete the depreciation schedule using the Straight-line Method. %24 %24

Historical cost 270,000 Estimated useful life 6 years Salvage value $ 24,000 12,000 hours Estimated useful hours Estimated hours per year: 3,100 2019 1,100 2020 1,200 2021 2,800 2022 2,600 2023 1,200 2024 Required Complete the depreciation schedule using the Straight-line Method. %24 %24

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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Question

**Depreciation Schedule Assignment**

**Background Information:**
- **Historical cost:** $270,000
- **Estimated useful life:** 6 years
- **Salvage value:** $24,000
- **Estimated useful hours:** 12,000 hours

**Estimated hours per year:**
- 3,100 hours in 2019
- 1,100 hours in 2020
- 1,200 hours in 2021
- 2,800 hours in 2022
- 2,600 hours in 2023
- 1,200 hours in 2024

**Tasks:**

1. **Complete the Depreciation Schedule using the Straight-line Method.**

**Schedule Format:**
- Adventure Park, Corp.
- **Depreciation Schedule - Straight Line Method**

| Year | Depreciation Expense | Accumulated Depreciation | Depreciable Cost |
|----------|----------------------|--------------------------|------------------|
| 12.31.19 | | | |
| 12.31.20 | | | |
| 12.31.21 | | | |
| 12.31.22 | | | |
| 12.31.23 | | | |
| 12.31.24 | | | |

2. **Record the Depreciation Expense for 2020.**

**Journal Entry Format:**

- **General Journal**

| | DR | CR |
|------------|-----|-----|
| | | |

3. **Net Book Value Calculation for 12.31.20:**

- **Historical cost:** $270,000
- **(Accumulated depreciation):**
- **Net book value at 12.31.20:**

This exercise will guide students to calculate depreciation using the straight-line method and accurately record the associated journal entries.

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