In recent years, Wildhorse 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 Acquired Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2018 $103,900 $13,200 5 Straight-line 2 July 1, 2019 83,750 10,010 5 Diminishing-balance 3 Nov. 1, 2019 70,587 6,570 6 Units-of-production For the diminishing-balance method, Wildhorse Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 23,710. Actual hours of use in the first 3 years were: 2019, 370; 2020, 4,130; and 2021, 4,700. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Machine 1: Straight-line depreciation Calculation End of Year Year Depreciable Amount Depreciation Rate # of months Depreciation Expense Accumulated Depreciation Carrying Amount 2018 $ % $ $ $ 2019 % 2020 % 2021 % 2022 % Machine 2: Diminishing-balance depreciation Calculation End of Year Year Carrying Amount Beg. of Year Depreciation Rate # of months Depreciation Expense Accumulated Depreciation Carrying Amount 2019 $ % $ $ $ 2020 % 2021 % 2022 % 2023 % Machine 3: Units-of-production depreciation Calculation End of Year Year Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Carrying Amount 2019 $ $ $ $ 2020 2021

In recent years, Wildhorse 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 Acquired Cost Residual Value Useful Life (in years) Depreciation Method 1 Jan. 1, 2018 $103,900 $13,200 5 Straight-line 2 July 1, 2019 83,750 10,010 5 Diminishing-balance 3 Nov. 1, 2019 70,587 6,570 6 Units-of-production For the diminishing-balance method, Wildhorse Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 23,710. Actual hours of use in the first 3 years were: 2019, 370; 2020, 4,130; and 2021, 4,700. (a) Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Machine 1: Straight-line depreciation Calculation End of Year Year Depreciable Amount Depreciation Rate # of months Depreciation Expense Accumulated Depreciation Carrying Amount 2018 $ % $ $ $ 2019 % 2020 % 2021 % 2022 % Machine 2: Diminishing-balance depreciation Calculation End of Year Year Carrying Amount Beg. of Year Depreciation Rate # of months Depreciation Expense Accumulated Depreciation Carrying Amount 2019 $ % $ $ $ 2020 % 2021 % 2022 % 2023 % Machine 3: Units-of-production depreciation Calculation End of Year Year Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Carrying Amount 2019 $ $ $ $ 2020 2021

Name: In recent years, Wildhorse Corporation has purchased three machines. B
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Description: In recent years, Wildhorse 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 h

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)

Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.)

Machine 1: Straight-line depreciation

		Calculation			End of Year
Year	Depreciable Amount	Depreciation Rate	# of months	Depreciation Expense	Accumulated Depreciation	Carrying Amount
2018	$	%		$	$	$
2019		%
2020		%
2021		%
2022		%

Machine 2: Diminishing-balance depreciation

		Calculation			End of Year
Year	Carrying Amount Beg. of Year	Depreciation Rate	# of months	Depreciation Expense	Accumulated Depreciation	Carrying Amount
2019	$	%		$	$	$
2020		%
2021		%
2022		%
2023		%

Machine 3: Units-of-production depreciation

		Calculation		End of Year
Year	Units-of- Production	Depreciation Cost/Unit	Depreciation Expense	Accumulated Depreciation	Carrying Amount
2019		$	$	$	$
2020
2021

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Machine	Acquired	Cost	Residual Value	Useful Life (in years)	Depreciation Method
1	Jan. 1, 2018	$103,900	$13,200	5	Straight-line
2	July 1, 2019	83,750	10,010	5	Diminishing-balance
3	Nov. 1, 2019	70,587	6,570	6	Units-of-production