Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years, and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000. a. Journalize the entry for the depreciation on this machinery for Year 1. If an amount box does not require an entry, leave it blank. fill in the blank 4f086b01efdcfa8_2 fill in the blank 4f086b01efdcfa8_3 fill in the blank 4f086b01efdcfa8_5 fill in the blank 4f086b01efdcfa8_6 b. Journalize the entry for the sale of the machinery. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar. fill in the blank 0ea5a0ff7fd802d_2 fill in the blank 0ea5a0ff7fd802d_3 fill in the blank 0ea5a0ff7fd802d_5 fill in the blank 0ea5a0ff7fd802d_6 fill in the blank 0ea5a0ff7fd802d_8 fill in the blank 0ea5a0ff7fd802d_9 fill in the blank 0ea5a0ff7fd802d_11 fill in the blank 0ea5a0ff7fd802d_12
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years, and the estimated residual value was $10,000. Williams uses the double-declining-balance method of
a.
| fill in the blank 4f086b01efdcfa8_2 | fill in the blank 4f086b01efdcfa8_3 | ||
| fill in the blank 4f086b01efdcfa8_5 | fill in the blank 4f086b01efdcfa8_6 |
b. Journalize the entry for the sale of the machinery. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.
| fill in the blank 0ea5a0ff7fd802d_2 | fill in the blank 0ea5a0ff7fd802d_3 | ||
| fill in the blank 0ea5a0ff7fd802d_5 | fill in the blank 0ea5a0ff7fd802d_6 | ||
| fill in the blank 0ea5a0ff7fd802d_8 | fill in the blank 0ea5a0ff7fd802d_9 | ||
| fill in the blank 0ea5a0ff7fd802d_11 | fill in the blank 0ea5a0ff7fd802d_12 |
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