Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Complete a depreciation schedule for the straight-line method. (Do not round Intermediate calculations.)
Year
At acquisition
1
2
3
Year
At acquisition
1
2
3
Income
Statement
Year
Depreciation
Expense
At acquisition
1
2
3
Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations.)
Income
Statement
Depreciation
Expense
Cost
Income
Statement
Depreciation
Expense
Cost
Balance Sheet
Cost
Accumulated
Depreciation
Balance Sheet
Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.)
Accumulated
Depreciation
Book Value
Balance Sheet
Accumulated
Depreciation
Book Value
Book Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb3ccf8-64a3-4f42-90b5-c9c7edf16923%2F5fdc47e0-062c-4413-b40b-09ef37360168%2F5in7oj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete a depreciation schedule for the straight-line method. (Do not round Intermediate calculations.)
Year
At acquisition
1
2
3
Year
At acquisition
1
2
3
Income
Statement
Year
Depreciation
Expense
At acquisition
1
2
3
Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations.)
Income
Statement
Depreciation
Expense
Cost
Income
Statement
Depreciation
Expense
Cost
Balance Sheet
Cost
Accumulated
Depreciation
Balance Sheet
Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.)
Accumulated
Depreciation
Book Value
Balance Sheet
Accumulated
Depreciation
Book Value
Book Value
![Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of
$27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its
three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3.
Required:
Complete a depreciation schedule for each of the alternative methods.
1. Straight-line.
2. Units-of-production.
3.
Double-declining-balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb3ccf8-64a3-4f42-90b5-c9c7edf16923%2F5fdc47e0-062c-4413-b40b-09ef37360168%2Ffd77q8p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of
$27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its
three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3.
Required:
Complete a depreciation schedule for each of the alternative methods.
1. Straight-line.
2. Units-of-production.
3.
Double-declining-balance.
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