New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $96,100. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank f3adbb01f07801f_1 $fill in the blank f3adbb01f07801f_2 $fill in the blank f3adbb01f07801f_3 2 $fill in the blank f3adbb01f07801f_4 $fill in the blank f3adbb01f07801f_5 $fill in the blank f3adbb01f07801f_6 3 $fill in the blank f3adbb01f07801f_7 $fill in the blank f3adbb01f07801f_8 $fill in the blank f3adbb01f07801f_9 4 $fill in the blank f3adbb01f07801f_10 $fill in the blank f3adbb01f07801f_11 $fill in the blank f3adbb01f07801f_12 5 $fill in the blank f3adbb01f07801f_13 $fill in the blank f3adbb01f07801f_14 $fill in the blank f3adbb01f07801f_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank f3adbb01f07801f_16 $fill in the blank f3adbb01f07801f_17 $fill in the blank f3adbb01f07801f_18 2 $fill in the blank f3adbb01f07801f_19 $fill in the blank f3adbb01f07801f_20 $fill in the blank f3adbb01f07801f_21 3 $fill in the blank f3adbb01f07801f_22 $fill in the blank f3adbb01f07801f_23 $fill in the blank f3adbb01f07801f_24 4 $fill in the blank f3adbb01f07801f_25 $fill in the blank f3adbb01f07801f_26 $fill in the blank f3adbb01f07801f_27 5 $fill in the blank f3adbb01f07801f_28 $fill in the blank f3adbb01f07801f_29 $fill in the blank f3adbb01f07801f_30 2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank. Cash fill in the blank 3b25f1f29fe003c_2 fill in the blank 3b25f1f29fe003c_3 Equipment fill in the blank 3b25f1f29fe003c_5 fill in the blank 3b25f1f29fe003c_6 fill in the blank 3b25f1f29fe003c_8 fill in the blank 3b25f1f29fe003c_9 fill in the blank 3b25f1f29fe003c_11 fill in the blank 3b25f1f29fe003c_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. fill in the blank 7cdd0bf67fe9fe6_2 fill in the blank 7cdd0bf67fe9fe6_3 fill in the blank 7cdd0bf67fe9fe6_5 fill in the blank 7cdd0bf67fe9fe6_6 fill in the blank 7cdd0bf67fe9fe6_8 fill in the blank 7cdd0bf67fe9fe6_9 fill in the blank 7cdd0bf67fe9fe6_11 fill in the blank 7cdd0bf67fe9fe6_12

New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $96,100. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank f3adbb01f07801f_1 $fill in the blank f3adbb01f07801f_2 $fill in the blank f3adbb01f07801f_3 2 $fill in the blank f3adbb01f07801f_4 $fill in the blank f3adbb01f07801f_5 $fill in the blank f3adbb01f07801f_6 3 $fill in the blank f3adbb01f07801f_7 $fill in the blank f3adbb01f07801f_8 $fill in the blank f3adbb01f07801f_9 4 $fill in the blank f3adbb01f07801f_10 $fill in the blank f3adbb01f07801f_11 $fill in the blank f3adbb01f07801f_12 5 $fill in the blank f3adbb01f07801f_13 $fill in the blank f3adbb01f07801f_14 $fill in the blank f3adbb01f07801f_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank f3adbb01f07801f_16 $fill in the blank f3adbb01f07801f_17 $fill in the blank f3adbb01f07801f_18 2 $fill in the blank f3adbb01f07801f_19 $fill in the blank f3adbb01f07801f_20 $fill in the blank f3adbb01f07801f_21 3 $fill in the blank f3adbb01f07801f_22 $fill in the blank f3adbb01f07801f_23 $fill in the blank f3adbb01f07801f_24 4 $fill in the blank f3adbb01f07801f_25 $fill in the blank f3adbb01f07801f_26 $fill in the blank f3adbb01f07801f_27 5 $fill in the blank f3adbb01f07801f_28 $fill in the blank f3adbb01f07801f_29 $fill in the blank f3adbb01f07801f_30 2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank. Cash fill in the blank 3b25f1f29fe003c_2 fill in the blank 3b25f1f29fe003c_3 Equipment fill in the blank 3b25f1f29fe003c_5 fill in the blank 3b25f1f29fe003c_6 fill in the blank 3b25f1f29fe003c_8 fill in the blank 3b25f1f29fe003c_9 fill in the blank 3b25f1f29fe003c_11 fill in the blank 3b25f1f29fe003c_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. fill in the blank 7cdd0bf67fe9fe6_2 fill in the blank 7cdd0bf67fe9fe6_3 fill in the blank 7cdd0bf67fe9fe6_5 fill in the blank 7cdd0bf67fe9fe6_6 fill in the blank 7cdd0bf67fe9fe6_8 fill in the blank 7cdd0bf67fe9fe6_9 fill in the blank 7cdd0bf67fe9fe6_11 fill in the blank 7cdd0bf67fe9fe6_12

Name: New lithographic equipment, acquired at a cost of $656,250 on March 1
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Description: New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the eff

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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On March 4 of Year 5, the equipment was sold for $96,100.

Required:

1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank f3adbb01f07801f_1	$fill in the blank f3adbb01f07801f_2	$fill in the blank f3adbb01f07801f_3
2	$fill in the blank f3adbb01f07801f_4	$fill in the blank f3adbb01f07801f_5	$fill in the blank f3adbb01f07801f_6
3	$fill in the blank f3adbb01f07801f_7	$fill in the blank f3adbb01f07801f_8	$fill in the blank f3adbb01f07801f_9
4	$fill in the blank f3adbb01f07801f_10	$fill in the blank f3adbb01f07801f_11	$fill in the blank f3adbb01f07801f_12
5	$fill in the blank f3adbb01f07801f_13	$fill in the blank f3adbb01f07801f_14	$fill in the blank f3adbb01f07801f_15

b. Double-declining-balance method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank f3adbb01f07801f_16	$fill in the blank f3adbb01f07801f_17	$fill in the blank f3adbb01f07801f_18
2	$fill in the blank f3adbb01f07801f_19	$fill in the blank f3adbb01f07801f_20	$fill in the blank f3adbb01f07801f_21
3	$fill in the blank f3adbb01f07801f_22	$fill in the blank f3adbb01f07801f_23	$fill in the blank f3adbb01f07801f_24
4	$fill in the blank f3adbb01f07801f_25	$fill in the blank f3adbb01f07801f_26	$fill in the blank f3adbb01f07801f_27
5	$fill in the blank f3adbb01f07801f_28	$fill in the blank f3adbb01f07801f_29	$fill in the blank f3adbb01f07801f_30

2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.

Cash	fill in the blank 3b25f1f29fe003c_2	fill in the blank 3b25f1f29fe003c_3
Equipment	fill in the blank 3b25f1f29fe003c_5	fill in the blank 3b25f1f29fe003c_6
	fill in the blank 3b25f1f29fe003c_8	fill in the blank 3b25f1f29fe003c_9
	fill in the blank 3b25f1f29fe003c_11	fill in the blank 3b25f1f29fe003c_12

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank.

		fill in the blank 7cdd0bf67fe9fe6_2	fill in the blank 7cdd0bf67fe9fe6_3
		fill in the blank 7cdd0bf67fe9fe6_5	fill in the blank 7cdd0bf67fe9fe6_6
		fill in the blank 7cdd0bf67fe9fe6_8	fill in the blank 7cdd0bf67fe9fe6_9
		fill in the blank 7cdd0bf67fe9fe6_11	fill in the blank 7cdd0bf67fe9fe6_12

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