**Depreciation Schedule Using the Units of Production Method****Asset Details:**- **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**Requirements:**1. **Depreciation Schedule:** - Complete the depreciation schedule using the units of production method. **Adventure Park, Corp. Depreciation Schedule - Units of Production** | **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. **Recording Depreciation Expense for 2020:** - Prepare a general journal entry for recording the depreciation expense. **General Journal Entry:** | **Account** | **DR** | **CR** | |--------------------------|---------|---------| | | | | | | | |3. **Net Book Value Calculation (12.31.20):** - Calculate the net book value of the equipment on December 31, 2020. | **Description** | **Amount** | |-----------------------------------|--------------| | **Historical Cost** | | | **(Accumulated Depreciation)** | | | **Net Book Value at 12.31.20** | | This exercise demonstrates the

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

Historical cost Estimated useful life Salvage value Estimated useful hours 270,000 6 years $ 24,000 12,000 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 Units of Production Method. %24

Historical cost Estimated useful life Salvage value Estimated useful hours 270,000 6 years $ 24,000 12,000 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 Units of Production Method. %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 7 Tweed Feed & Seed purchased a new machine on January 1, 2022: Cost when acquired Estimated residual value Estimated useful life Accumulated depreciation at the end of year 5 (assume straight-line depreciation) It is now the beginning of year 6 and the management reevaluated the estimates related to the machine. Compute the depreciation expense for year 6 under each of the following independent cases: Event Case Depreciation Exp A B C $26,000 2,000 10 years 12,000 The estimated total useful life should have been 15 years The residual value is changed to $0.00; useful life unchanged. The estimated total useful life is changed to 7 years and the residual value is changed to $4,000.
c. What will be the net book value of the machine at the end of its tenth year of use before it is disposed of, under each depreciation method? Answer is not complete. Net book value Straight-line depreciation Declining-balance depreciation
Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year Useful life (SL) Depreciation rate - X 1 More Info - X Requirements Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. On January 4, 2018, Bailey Enterprises, Inc., paid $205,600 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $1,000 for transportation charges, $100 for insurance for the equipment while in transit, $10,500 sales tax, and $2,800 for a special which to place the equipment in the plant.…
1 Check my work S Purchase price Delivery cost Installation charge Estimated life $ 55,800 $ 4,000 Estimated units Salvage estimate $ 2,000 5 years 142,000 $ 5,000 During Year 1, the machine produced 38,000 units, and during Year 2 it produced 40,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 12345678 32.00 24.49 19.20 17.49 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46
Question 4 On January 1, 2019, Hamad Town Co purchased a machine for $200,000. It is estimated that the machine will have a 10-year uneta e or 100,000 units over its use the Savage valu at the end its useful te is estimated to be $20,000 Assuming the company produced 12,000 units in 2019 Depreciation expense for the year ended December 31, 2010 uning units of production method of depreciation would be OA. $26.400 None of these answers Oc. $40,000 Activate Windows OD. $22,000
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Question 43 Choose the correct answer from the choices.
C E F H |Historical cost Estimated useful life 2$ 270,000 6 years Salvage value Estimated useful hours $ 24,000 12,000 hours Estimated hours per year: 3,100 2019 1,100 2020 1,200 2021 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Double Declining Balance Method. Adventure Park, Corp Depreciation Schedule - Double Declining Balance Depreciation Expense Ending Book Balance Beginning Year Book Balance Rate # of Years 2019 2020 2021 2022 2023 2024 HINT: the last year of depreciation expense will be a plug in order not to depreciate below the salvage value. Your ending book balance should be the $24,000 salvage value. 2 Analyze the effect of depreciation on the 2020 financial statements. Page 1 Assets = Liabilities + Equity Revenues Expenses = Net Income 3 Record depreciation expense for 2020. General Journal DR CR
Question 1 On January 1, 2014, Evers Company purchased the following machine for use in its production process: Machine: The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Instructions a) Calculate the amount of depreciation expense that Evers should record each year of its useful life under the following assumptions. Show your workings. (1) Straight-line method (2) Double declining balance method (3) Units-of-activity method and estimates that the useful life of machine is 125,000 units. Actual usage is as follows: 2014, 45,000 units; 2015, 35,000 units; 2016, 25,000 units; 2017, 20,000 units. b) Which method used to calculate depreciation reports the highest amount of depreciation expense year 1? The highest in year 4? The highest total amount over the 4-year period? in
9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000
Please find the depreciation expenses thanku