Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4)[The following information applies to the questions displayed below.]123456University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The companyestimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use themachine for six years or about 12,500 total hours. Actual use per year was as follows:YearYear1234SSVI56Problem 7-5A (Algo) Part 22. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediatecalculations.)Hours Used2,9001,8001,9002,1001,9001,900DepreciationExpenseUNIVERSITY CAR WASHDepreciation Schedule-Double-Declining-BalanceEnd of Year AmountsAccumulatedDepreciationBook ValueHelp

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Description: Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4)[The following information applies to the questions displayed below.]123456University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. T

Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

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Accounting

Problem 7-5A (Algo) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) Year 1 2 3 4 5 6 UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value

Problem 7-5A (Algo) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) Year 1 2 3 4 5 6 UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...

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! Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $243,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: 1 2 3 Year 4 Year 1 Problem 7-5A (Algo) Part 1 2 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) 5 6 Total 4 5 Hours Used 2,700 2,000 2,100 1,900 1,700 2,100 UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value
! Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $243,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: 3 Year 1 2 4 5 Year 1 2 6 Total 3 4 5 6 Problem 7-5A (Algo) Part 2 Hours Used 2,700 2,000 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 2,100 1,900 1,700 2,100 Depreciation Expense UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Accumulated Depreciation Book Value
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 4 5 6 Year 1 2 3 Hours Used 2,900 1,800 1,900 Problem 7-5A (Algo) Part 3 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) ▶ 2,100 1,900 1,900 UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 4 Year 1 2 3 4 5 5 6 Hours Used 2,900 1,800 1,900 2,100 Problem 7-5A (Algo) Part 1 1,900 1,900 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value S
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $243,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 Hours Used 2,700 2 2,000 3 2,100 4 1,900 5 1,700 6 2,100 Problem 7-5A (Algo) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Year Expense 1 2 3 4 す 5 6 Total $ Accumulated Depreciation Book Value
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $243,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 Year 1 4 3556NH 5 6 2 4 Problem 7-5A (Algo) Part 3 Hours Used 2,700 2,000 2,100 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) 1,900 1,700 2,100 UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Accumulated Depreciation Depreciation Expense Book Value
Required information Problem 7-58 (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year 1 2 Year 1 2 3 4 Problem 7-5B (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.) 3 4 Total Hours Used 2,800 2,000 2,000 3,200 $ QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value
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