You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged. In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.40 per hour. Year Schedule A Schedule B Schedule C 1 2 3 4 5 6 7 8 Total $10,000 $10,125 6,000 13,500 3,600 13,500 2,160 13,500 740 3,375 $22,500 $10,120 6,600 7,480 6,600 4,400 7,040 4,840 $54,000 $47,080
You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged. In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.40 per hour. Year Schedule A Schedule B Schedule C 1 2 3 4 5 6 7 8 Total $10,000 $10,125 6,000 13,500 3,600 13,500 2,160 13,500 740 3,375 $22,500 $10,120 6,600 7,480 6,600 4,400 7,040 4,840 $54,000 $47,080
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. For each of the depreciation schedules shown on the Patterson Planning Corp., fill in the following information. If an amount box does not require an
entry, leave it blank.
Useful life
Residual value
Asset cost
Total operating hours
Feedback
B
$
$
Check My Work
Think about how depreciation is computed under each method.
The total depreciation for this asset now will be $
C
Final Questions
Review the depreciation schedules on the Patterson Planning Corp. panel, then answer the following questions.
1. How would you adjust Schedule B if, at the beginning of Year 3, the asset was estimated to have 5 more years of life remaining, but with a residual
value that was $2,000 higher?
The depreciation amount for Year 3 will be $
2. What is the difference between the journal entries for discarding or selling a fixed asset?
The journal entry to discard a fixed asset
differs from the other entry because
3. Complete the following sentences about depreciation.
(A) When a fixed asset is fully depreciated it is
account represents
if
(C) Depreciation measures
. (B) The balance of the accumulated depreciation
Transcribed Image Text:You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were
damaged.
In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets
has a depreciation rate of $4.40 per hour.
Year Schedule A Schedule B Schedule C
1
2
3
4
5
6
7
8
Total
$10,000 $10,125
6,000
13,500
3,600
13,500
2,160
13,500
740
3,375
$22,500
$10,120
6,600
7,480
6,600
4,400
7,040
4,840
$54,000 $47,080
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