Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,600. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 12,000 hours. Actual annual usage was 4,000 hours in year 1; 3,700 hours in year 2; 2,700 hours in year 3; and 1,600 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 1 2 3 4 + 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount Make sure that the carrving amount at the end of year 4 is equal to the residual value Depreciation expense for the last

Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,600. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 12,000 hours. Actual annual usage was 4,000 hours in year 1; 3,700 hours in year 2; 2,700 hours in year 3; and 1,600 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 1 2 3 4 + 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount Make sure that the carrving amount at the end of year 4 is equal to the residual value Depreciation expense for the last

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $8,600. The estimated useful life
was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 12,000 hours. Actual
annual usage was 4,000 hours in year 1; 3,700 hours in year 2; 2,700 hours in year 3; and 1,600 hours in year 4.
Required:
1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount.
Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period
should be calculated as Carrying value of 3rd year minus residual value.)
Year
Depreciation
Expense
Accumulated
Depreciation
Carrying
Amount
At acquisition
1
2
3
4
1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar
amount Make sure that the carrving amount at the end of vear 4 is equal to the residual value Denreciation expense for the last

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Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $22,000. The estimated useful life was four years, and the residual value was $2,000. Assume that the estimated productive life of the machine was 10,000 hours. Actual annua usage was 4,000 hours in Year 1; 3,000 hours in Year 2; 2,000 hours in Year 3; and 1,000 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Year At acquisition 1 2 3 4 Req 1C Complete a depreciation schedule using the straight-line method. Depreciation Accumulated Expense Depreciation Net Book Value
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