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Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipment's useful fe, Seconds estimates that es residual value will be 50.000 The equipment operated for 800 hours the first year, 2,400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double dechining balance Show your computations Note Three deprecation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight Line Depreciation Schedule Date 12.2004 5 12-31-2024 12.31-2025 12-31 2026 12-31-2027 Asset Cost 30,000 Depreciation for the Year Useful Life Depreciable Cost 1 24,000 24,000- 24,000 24,000 4 years 4 years 4 years 4 years Depreciation Expense S 6,000 6.000 6,000 6000 Accumulated Depreciation Book Value 1 30,000

Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipment's useful fe, Seconds estimates that es residual value will be 50.000 The equipment operated for 800 hours the first year, 2,400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double dechining balance Show your computations Note Three deprecation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight Line Depreciation Schedule Date 12.2004 5 12-31-2024 12.31-2025 12-31 2026 12-31-2027 Asset Cost 30,000 Depreciation for the Year Useful Life Depreciable Cost 1 24,000 24,000- 24,000 24,000 4 years 4 years 4 years 4 years Depreciation Expense S 6,000 6.000 6,000 6000 Accumulated Depreciation Book Value 1 30,000

FINANCIAL ACCOUNTING
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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Seconds Fried Chicken bought equipment on January 2, 2024, for $30.000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipments useful life, Seconds estimates that its residual value will be $6,000 The equipment operated for 800 hours the first year. 2.400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double declining balance Show your computations Note Three depreciation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight-Line Depreciation Schedule Date 1.2.2004 5 12:31-2024 12.31-2025 12-31-2026 12-31-2027 Asset Depreciable Cost Cost 30.000 1 Depreciation for the Year Useful Life 24,000 24,000- 24,000- 24,000 4 years 4 years 4 years 4 years Depreciation Accumulated Expense Depreciation S 6,000 6.000 6,000 6.000 $ Book Value 30,000
Transcribed Image Text:Seconds Fried Chicken bought equipment on January 2, 2024, for $30.000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipments useful life, Seconds estimates that its residual value will be $6,000 The equipment operated for 800 hours the first year. 2.400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double declining balance Show your computations Note Three depreciation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight-Line Depreciation Schedule Date 1.2.2004 5 12:31-2024 12.31-2025 12-31-2026 12-31-2027 Asset Depreciable Cost Cost 30.000 1 Depreciation for the Year Useful Life 24,000 24,000- 24,000- 24,000 4 years 4 years 4 years 4 years Depreciation Accumulated Expense Depreciation S 6,000 6.000 6,000 6.000 $ Book Value 30,000
1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. 2. Which method tracks the wear and tear on the equipment most closely?
Transcribed Image Text:1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. 2. Which method tracks the wear and tear on the equipment most closely?
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