Question

Mama's Fried Chicken bought equipment on January 2, 2018, for $15.000. The woment was expected to Mama's estimate that is residual will be $3.000. The materia for hours the first year for 3,000 hours. At the end of the equipment's useful ife, dy and 600 hours the fourth year Readers methods straight line, units of production, and Requirement. Prepare a schedul a tions , come in and book a pery double-deciring-balance. Show your computations. Note: The depreciation schedules must be prepared Begin by preparing a depreciation schedule using the straight line method Straight-Line Depreciation Schedule Depreciation for the You Asset Depreciable Useful Depreciation Accumulated Date Cost Cost Expense Depreciation 1-2-2018 Tool 12-01-2018 120004 3200 12-31-2019 12000 12-31-2000 12-31-30 Before calculating the unit-production depreciation schedule, calculate the depreciation Choose from any bat or enter any number in the hout outs and then continue!

Answer 1

Accumulated Depreciation Book Value Ans 1a Straight Line Depreciation Schedule Straight line depreciation = (Initial Cost-Salvage Value) / Estimated useful life Depreciation for the year Depreciation Year Useful Life Actual Cost Depreciable Cost Expense 1-02-2018 $15,000 12-31-2018 $12,000 / $3,000 12-31-2019 $9,000 / $3,000 12-31-2020 $6,000 / $3,000 12-31-2021 $3,000 7 $3,000 Il 11 ANW $3,000 $6,000 $9,000 $12,000 $12,000 $9,000 $6,000 $3,000 Ans 1b Unit of Production depreciation Estimated operate 3000 hours (Initial Cost-Salvage Value) / Estimated units production - Depreciation per unit [($15000-$3000)/3000] = $ 4 per hour Depreciation for the year Depreciable Per Number of Depreciation Unit units Expense Date Actual Cost Accumulated Depreciation Book Value (A) (B) (C) (A)-(C) | $15,000 1-02-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 $4.00 x $4.00 x $4.00 x $4.00 x 300 = 900 = 1200 = 600 = $1,200 $3,600 $4,800 $2,400 $1,200 $4,800 $9,600 $12,000 $13,800 $10,200 $5,400 $3,000

Ans 10 Double Declining Balance Method (DDBM) = 2/Useful Life* Book Value Depreciation for the year Depreciation Accumulated Date Actual Cost Book Value DDB rate Book Value Expense Depreciation $15,000 $15,000 x 0.5 = $7,500 $7,500 $7,500 $7,500 X 0.5 = $3,750 $11,250 $3,750 $750 $12,000 $3,000 $0 $12,000 $3,000 In the year 3, deprecition of $750 is provided to restrict the book value of the equipment to its salvage value i.e. $3000 AWNAH