2 7 Part 1 of 6 points Port Required information PB9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below] At the beginning of the year, Feliz Industries bought a shed, a machine, and a trailer. The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7 years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use. The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4.000 hours in year 2 The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000 PB9-1 (Algo) Part 1 Required: 1. Compute the amount to be capitalized for the shed. Total cost S 2. Compute year 2 straight-line depreciation expense for the shed and prepare the journal entry to record it. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the year 2 straight-line depreciation expense for the shed. Note: Enter debits before credits Transaction General Journal Debit Credit View general Journal At the beginning of the year, Feliz Industries bought a shed, a machine, and a trailer The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7 years, with a residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use. The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2,000. PB9-1 (Algo) Part 3 3. Compute year 2 units-of-production depreciation expense for the machine. (Do not round intermediate calculations.) Year 2 units-of-production depreciation expense 4. Prepare the journal entry to record year 2 units-of-production depreciation expense for the machine. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the year 2 depreciation expense for the machine. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal apples to the questions displayed below] At the beginning of the year. Feliz Industries bought a shed, a machine, and a trailer The shed initially cost $21,200 but had to be renovated at a cost of $720. The shed was expected to last 7 years, with residual value of $1,900. Repairs costing $540 were incurred at the end of the first year of use The machine cost $11,700, and is estimated to have a total life of 40,000 hours and residual value of $900. The machine was actually used 2,000 hours in year 1 and 4,000 hours in year 2. The trailer cost $12,200 and was expected to last 4 years, with a residual value of $2.000. PS PB9-1 (Algo) Part 5 5. Compute years 1 and 2 double-declining-balance depreciation expense for the trailer. Double-declining-balance Year 1 Year 2 PB9-1 (Algo) Part 6 6. Prepare the journal entry to record year 2 double-declining balance depreciation expense for the trailer of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field) View transaction list Journal entry worksheet < Record the year 2 depreciation expense for the trailer Note: Enter debits before credits Transaction General Journal Debit Credit Clear entry View general journal