Question
4A Depreciation: GREEN company acquires a machine at a cost of $20,000. The machine is expected to have a salvage value of $5,000 at the
4A Depreciation: GREEN company acquires a machine at a cost of $20,000. The machine is expected to have a salvage value of $5,000 at the end of its 10-year useful life. It's estimated that the machine will also last for 15,000 widgets. The machine was purchased on Jan. 1, 1999. It produced 10,000 widgets in Yr 1; and 5,000 widgets in Yr 2.
Prepare journal entries using UNITS OF OUTPUT METHOD.
a. Acquisition of machine for cash.
b. Adjusting entry for DEPRECIATION on Dec. 31, Yr 1.
c. Adjusting entry for DEPRECIATION on Dec. 31, Yr 2.
4B Partial YR Depreciation: Redo the above problem #4A but assume machine was purchased on APRIL 1, 1999.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
