Homework Answers
Answer to Question 1:
Annual Depreciation = (Cost of Equipment - Salvage Value) /
Useful Life
Annual Depreciation = ($142,800 - $14,400) / 5
Annual Depreciation = $128,400 / 5
Annual Depreciation = $25,680
Answer to Question 2:
Balance in Income Summary = Service Revenue - Rent Expense -
Utility Expense - Salary Expense - Depreciation Expense -
Advertising Expense
Balance in Income Summary = $253,000 - $10,300 - $3,800 - $18,800 -
$9,300 - $4,530
Balance in Income Summary = $206,270
Answer to Question 3:
Current Assets = Cash + Accounts Receivable + Office
Supplies
Current Assets = $6,954 + $15,733 + $2,825
Current Assets = $25,512
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salvage value of $9,760 after a useful life of 8 years. Compute
2017 depreciation expense using the double-declining-balance
method. Depreciation expense $ LINK TO TEXT Compute 2017
depreciation expense using the double-declining-balance method,
assuming the machinery was purchased on October 1, 2017. (Round
answer to 0 decimal places, e.g. 5,125.) Depreciation expense $
Click if you would like to Show Work for this...
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1, 2014, for $78,000. The equipment had an estimated life of six
years and an estimated residual value of $6,000. The company used
the straight-line method to depreciate the equipment.
Assume that Gonzalez Company sold the equipment on July 1, 2016,
and received $21,000 cash and a note for an additional $21,000.
Required:
1.
Make the journal entry to record depreciation on the equipment
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