**Required Information****CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3]**[The following information applies to the questions displayed below.]At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060.**CP9-1 (Algo) Part 4**4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.**Complete this question by entering your answers in the tabs below.**- Req 4A- Req 4BPrepare the journal entry to record the year 2 straight-line depreciation expense for the shelving. *(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)***View transaction list****Journal entry worksheet**- Record the year 2 straight-line depreciation expense for the shelving.*Note: Enter debits before credits.*| Transaction | General Journal | Debit | Credit ||-------------|-----------------|-------|--------|| 1 | | | |**Buttons**- Record entry- Clear entry- View general journal ---### Required Information**CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3]**[The following information applies to the questions displayed below.]At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery’s total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060.### CP9-1 (Algo) Part 44. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it.**Complete this question by entering your answers in the tabs below.**- **Req 4A** | **Req 4B**- **Compute year 2 straight-line depreciation expense for the shelving.**- **Year 2 straight-line depreciation expense**: [Text Box]---Explanation: The task involves calculating the straight-line depreciation expense for shelving in year 2 and recording the appropriate journal entry. Additional elements like overhaul and installation costs for machinery, expected life, residual values, and usage hours need to be considered for comprehensive depreciation analysis.

Introduction: As per straight line method of depreciation, depreciation on assets is calculated…

! Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 4 4. Compute year 2 straight-line depreciation expense for the shelving and give the journal entry to record it. Complete this question by entering your answers in the tabs below. Req 4A Prepare the journal entry to record the year 2 straight-line depreciation expense for the shelving. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Req 4B Journal entry worksheet < A Record the year 2 straight-line depreciation expense for the shelving. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal >

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q