### Equipment Depreciation ScheduleSouthern Fried Chicken bought equipment on January 2, 2024, for $21,000. The equipment is expected to remain in service for four years and operate for 5,500 hours. At the equipment’s useful life end, its residual value will be $3,000. The equipment operated for a total of 3,000 hours over the first three years, as shown below.#### Depreciation Table| Date | Depreciable Cost | Useful Life | Depreciation Expense | Accumulated Depreciation | Book Value ||------------|------------------|-------------|----------------------|--------------------------|------------|| 1-2-2024 | $21,000 | | | | $21,000 || 12-31-2024 | $18,000 | 4 years | $4,500 | $4,500 | $16,500 || 12-31-2025 | $18,000 | 4 years | $4,500 | $9,000 | $12,000 || 12-31-2026 | $18,000 | 4 years | $4,500 | $13,500 | $7,500 || 12-31-2027 | $18,000 | 4 years | $4,500 | $18,000 | $3,000 |#### ExplanationIn the table above, the equipment’s initial purchase cost and its expected useful life are documented. The depreciation schedule uses the straight-line method.- **Depreciable Cost**: Initial cost minus residual value ($21,000 - $3,000 = $18,000).- **Useful Life**: Scheduled for 4 years.- **Depreciation Expense**: Calculated as Depreciable Cost divided by Useful Life ($18,000 / 4 = $4,500 annually).- **Accumulated Depreciation**: The sum of each year's depreciation expenses.- **Book Value**: The difference between the cost and accumulated depreciation for each respective year-end date.This schedule helps track the decline in equipment value due to usage over its useful life and provides insights into financial planning and asset management.

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Description: ### Equipment Depreciation ScheduleSouthern Fried Chicken bought equipment on January 2, 2024, for $21,000. The equipment is expected to remain in service for four years and operate for 5,500 hours. At the equipment’s useful life end, its residual v

Lets understand the basics.In straight line basis depreciation is calculated in equal installments…

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Southem Fried Chicken bought equipment on January 2, 202 1,800 hours the third year, and 900 hours the fourth year Read the resumes Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book vale per year for the equipment under the these depreciation methods sightine, units of prod Begin by preparing a depreciation schedule using the straight line method Straight Line Depreciation Schedule Date 1-2-2004 S 12-31-2024 12-31-2025 12-31-2026 Asset Cost 21,000 Depreciable Cost Depreciation for the Year Useful Life 18.000+ 18.000+ 15,000 18.000 4 years 4 years Depreciation Accumulated Expense Depreciation 4,500 $ 4,500 4.500 4,500 4.500 0.000 13,500 18.000 S Book Value 21,000 16.500

Southem Fried Chicken bought equipment on January 2, 202 1,800 hours the third year, and 900 hours the fourth year Read the resumes Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book vale per year for the equipment under the these depreciation methods sightine, units of prod Begin by preparing a depreciation schedule using the straight line method Straight Line Depreciation Schedule Date 1-2-2004 S 12-31-2024 12-31-2025 12-31-2026 Asset Cost 21,000 Depreciable Cost Depreciation for the Year Useful Life 18.000+ 18.000+ 15,000 18.000 4 years 4 years Depreciation Accumulated Expense Depreciation 4,500 $ 4,500 4.500 4,500 4.500 0.000 13,500 18.000 S Book Value 21,000 16.500

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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