University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year 1 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company
estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the
machine for six years or about 12,000 total hours. Actual use per year was as follows:
Year
Year
1
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate
calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Depreciation. Accumulated
Expense
Depreciation
calculations.)
Year
1
2
1
2
Year
Year
3
4
1
2
3
4
5
3
2
5
4
5
6
6
Total
$
6
Total $
$
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Hours Used
3,100
1,100
1,200
Year
2,800
2,600
1,200
Required information
[The following information applies to the questions displayed below]
University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company
estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the
machine for six years or about 12,000 total hours. Actual use per year was as follows:
2
4
41,000
41,000
Depreciation Accumulated
Expense
Depreciation
6
$
41,000 $
41,000
41,000
41,000
41,000
41,000
246,000
3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal
places and use this amount in all subsequent calculations.)
41,000
82,000
Hours Used
3,100
1,100
1,200
2,800
2,600
1,200
Depreciation
Expense
Book Value
www.ving an awwwwwmmy-valurive unu your mermediate
41,000
82.000
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Accumulated
Depreciation
3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal
places and use this amount in all subsequent calculations.)
Book Value
Depreciation Accumulated
Expense
Depreciation
Book Value
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Book Value
Transcribed Image Text:" Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year Year 1 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation. Accumulated Expense Depreciation calculations.) Year 1 2 1 2 Year Year 3 4 1 2 3 4 5 3 2 5 4 5 6 6 Total $ 6 Total $ $ UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Hours Used 3,100 1,100 1,200 Year 2,800 2,600 1,200 Required information [The following information applies to the questions displayed below] University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: 2 4 41,000 41,000 Depreciation Accumulated Expense Depreciation 6 $ 41,000 $ 41,000 41,000 41,000 41,000 41,000 246,000 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) 41,000 82,000 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 Depreciation Expense Book Value www.ving an awwwwwmmy-valurive unu your mermediate 41,000 82.000 UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Accumulated Depreciation 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) Book Value Depreciation Accumulated Expense Depreciation Book Value UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Book Value
3
0
Required information
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company
estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the
machine for six years or about 12,000 total hours. Actual use per year was as follows:
Year
1
Hours Used
3,100)
1,100
1,200
2,800
2,600
1,200
Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Straight-Line
End of Year Amounts
Transcribed Image Text:3 0 Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company estimates that the equipment will have a residual value of $24,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year 1 Hours Used 3,100) 1,100 1,200 2,800 2,600 1,200 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts
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