1. A machine costing $59,375 with a 5-year life and $3,600 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.
Year | Depreciation | |
Year 1 | $ | |
Year 2 | $ | |
Year 3 | $ | |
Year 4 | $ | |
Year 5 | $ |
2.
An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $3,400. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,360.
a. Determine the amount of the annual
depreciation for the first two years.
$
b. Determine the book value at the end of Year
2.
$
c. Determine the depreciation expense for each
of the remaining years after revision.
$
3.
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General Journal
Journalize the entry for the transaction on November 14. Refer to the Chart of Accounts for exact wording of account titles. |
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Journalize the entry for the transaction on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. Assume a 360-day year when calculating interest. |
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ACCOUNTING EQUATION
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Journalize the entry for the transaction on February 12. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places. Assume a 360-day year when calculating interest. |
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JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1. A machine costing $59,375 with a 5-year life and $3,600 residual value was purchased January...
An asset was purchased for $71,000 and originally estimated to have a useful life of 10 years with a residual value of $3,400. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,360. a. Determine the amount of the annual depreciation for the first two years. $ b. Determine the book value at the end of Year 2. $ c. Determine the depreciation...
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