Homework Help is Here – Start Your Trial Now!
Business
Accounting
T6-Use the following informnation to calculate depreciation under the 3 separate methods. y also estimates it will use the machine for four years or about 8,000 total hours. peetah Copy purchased a new copy machine. The new machine cost $140,000 including astallation. The company estimates the equipment will have a residual value of $35,000. Cheetah Сору. . Calculate the annual depreciation expense using straight-line depreciation. 2. Prepare the depreciation schedule using double declining depreciation. Year Beginning book value Depreciation Depreciation Accumulated Ending book rate 1 expense depreciation value 2 3 3. Prepare the depreciation schedule using activity-based depreciation. Depreciation Depreciation Accumulated depreciation Ending Year Hours used rate expense book value 1 3,000 2,000 3 2,000 4 2,000 2.

T6-Use the following informnation to calculate depreciation under the 3 separate methods. y also estimates it will use the machine for four years or about 8,000 total hours. peetah Copy purchased a new copy machine. The new machine cost $140,000 including astallation. The company estimates the equipment will have a residual value of $35,000. Cheetah Сору. . Calculate the annual depreciation expense using straight-line depreciation. 2. Prepare the depreciation schedule using double declining depreciation. Year Beginning book value Depreciation Depreciation Accumulated Ending book rate 1 expense depreciation value 2 3 3. Prepare the depreciation schedule using activity-based depreciation. Depreciation Depreciation Accumulated depreciation Ending Year Hours used rate expense book value 1 3,000 2,000 3 2,000 4 2,000 2.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
complete the following bank reconciliation and journal entries
### Calculating Depreciation Using Three Methods **Scenario:** Cheetah Copy purchased a new copy machine for $140,000, which includes installation costs. The equipment is estimated to have a residual value of $35,000. The machine is expected to be used for four years or approximately 8,000 total hours. #### 1. Straight-Line Depreciation - **Task:** Calculate the annual depreciation expense. #### 2. Double Declining Depreciation **Depreciation Schedule Table:** | Year | Beginning Book Value | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Ending Book Value | |------|----------------------|-------------------|----------------------|--------------------------|-------------------| | 1 | | | | | | | 2 | | | | | | | 3 | | | | | | | 4 | | | | | | #### 3. Activity-Based Depreciation **Depreciation Schedule Table:** | Year | Hours Used | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Ending Book Value | |------|------------|-------------------|----------------------|--------------------------|-------------------| | 1 | 3,000 | | | | | | 2 | 2,000 | | | | | | 3 | 2,000 | | | | | | 4 | 2,000 | | | | | *Note: Made by Dr. Baaske – Do not share.*
Transcribed Image Text:### Calculating Depreciation Using Three Methods **Scenario:** Cheetah Copy purchased a new copy machine for $140,000, which includes installation costs. The equipment is estimated to have a residual value of $35,000. The machine is expected to be used for four years or approximately 8,000 total hours. #### 1. Straight-Line Depreciation - **Task:** Calculate the annual depreciation expense. #### 2. Double Declining Depreciation **Depreciation Schedule Table:** | Year | Beginning Book Value | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Ending Book Value | |------|----------------------|-------------------|----------------------|--------------------------|-------------------| | 1 | | | | | | | 2 | | | | | | | 3 | | | | | | | 4 | | | | | | #### 3. Activity-Based Depreciation **Depreciation Schedule Table:** | Year | Hours Used | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Ending Book Value | |------|------------|-------------------|----------------------|--------------------------|-------------------| | 1 | 3,000 | | | | | | 2 | 2,000 | | | | | | 3 | 2,000 | | | | | | 4 | 2,000 | | | | | *Note: Made by Dr. Baaske – Do not share.*
The image shows a table used for accounting purposes, specifically for recording debits and credits in financial accounts. The table consists of five columns: Date, Account, Debit, and Credit. Here is the transcription of the data: | Date | Account | Debit | Credit | |------|-----------------|-------|--------| | | Cash | | 317 | | | Utility Expense | 500 | 400 | | | Notes Payable | | 500 | | | Cash | 60 | | | | Loan Payable | | 60 | | | Bank Loan Pmt | 311 | | This ledger demonstrates typical financial transactions such as expenses, loan payments, and fund allocations. Each row records a transaction affecting the specified accounts under debit and credit columns, adhering to the fundamental accounting equation.
Transcribed Image Text:The image shows a table used for accounting purposes, specifically for recording debits and credits in financial accounts. The table consists of five columns: Date, Account, Debit, and Credit. Here is the transcription of the data: | Date | Account | Debit | Credit | |------|-----------------|-------|--------| | | Cash | | 317 | | | Utility Expense | 500 | 400 | | | Notes Payable | | 500 | | | Cash | 60 | | | | Loan Payable | | 60 | | | Bank Loan Pmt | 311 | | This ledger demonstrates typical financial transactions such as expenses, loan payments, and fund allocations. Each row records a transaction affecting the specified accounts under debit and credit columns, adhering to the fundamental accounting equation.
Expert Solution
Step 1

1. Annual depreciation= (Cost- Salvage value)/useful life

Accounting homework question answer, step 1, image 1

Depreciation per year= $ 26250

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS