7 Instructions Use the following data to complete the depreciation calculations: Equipment Purchased on 1/2/2019 Cost of Equipment $62,000 Expected Life (for SL and DDB) 10 years Expected Life (for Units of Production) 75,000 product units Expected Salvage lor Residual Value) $7,000 17 Part 1: Straight-Line depreciation Part A - use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Part B - using the Excel function (click on fx, choose SLN, fill in the arguments screen), calculate the depreciation expense for years 1, 9 and 10. Units Of Production (Units of Output) depreciation Use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas in Year 10 vithout considering vhether you've depreciated too much or too little of the asset! Note: there is no Excel fx for Units of Production depreciation. Double-Declining Balance depreciation Part A - use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas in Year 10 vithout considering whether you've depreciated too much or too little of the asset! Part B - using the Excel function (click on fx, choose DDB, fill in the arguments screen), calculate the depreciation expense for years 1, 9 and 10. 32 Part 2: Part A - complete adjusting entries for each type of depreciation method as of 12/31/19. Part B - answer the question in the commentary section. 36 Part 1 -- Calculations 37 Straight-Line Depreciation 3 Part A: Construct formulas to calculate Depreciation Expense for each year, and Accumulated Depreciation and Book Value at the end of each year. Depreciation Expense Accumulated depreciation Book Value $62,000 1/2/2019 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 5 Part B: Using Excel function (fx SLN), determine the depreciation expense for: 57 Year 1 58 Year 9 59 Year 10 62 Units of Output (Units of Production) Depreciation Construct formulas to calculate Depreciation Expense for each year, and Accumulated Depreciation and Book Value at the end of each year. Apply the formula without considering whether you've depreciated too much or too little of the asset! Book 67 Actual Number of Units Produced Depreciation EXJENSE Accumulated depreciation $62,000 15,200 4,800 4,000 2,400 20,000 2,400 11,200 1,600 10,400 8,000 1/2/2019 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 83 Double-Declining Balance Depreciation 4 Part A: Construct formulas to calculate Depreciation Expense for each year & Accumulated Depreciation and Book Value at the end of each year. *Apply Mem u w ter courier and one of the esser Depreciation Accumulated Depreciation Book Value $62,000 1/2/2019 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0 Part B: Using Excel function (fx DDB), determine the depreciation expense for: 104 Year 1 105 Year 9 106 Year 10 * Part 2 -- Adjusting Entries & Commentary. Prepare the adjusting journal entry for depreciation on 12/31/19 three different ways: Straight-Line, Units of Production, and Double Declining Balance. Debit Credit Adjusting Entry: Straight-Line Acct Titles Adjusting Entry: Units of Prod. Adjusting Entry: DDB Are the calculations YOU made for depreciation expense for Double-Declining Balance and Units of Production (in part A) correct? (Answer Yes or No and explain why your calculations are correct or incorrect.) 7 Instructions Use the following data to complete the depreciation calculations: Equipment Purchased on 1/2/2019 Cost of Equipment $62,000 Expected Life (for SL and DDB) 10 years Expected Life (for Units of Production) 75,000 product units Expected Salvage lor Residual Value) $7,000 17 Part 1: Straight-Line depreciation Part A - use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Part B - using the Excel function (click on fx, choose SLN, fill in the arguments screen), calculate the depreciation expense for years 1, 9 and 10. Units Of Production (Units of Output) depreciation Use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas in Year 10 vithout considering vhether you've depreciated too much or too little of the asset! Note: there is no Excel fx for Units of Production depreciation. Double-Declining Balance depreciation Part A - use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas in Year 10 vithout considering whether you've depreciated too much or too little of the asset! Part B - using the Excel function (click on fx, choose DDB, fill in the arguments screen), calculate the depreciation expense for years 1, 9 and 10. 32 Part 2: Part A - complete adjusting entries for each type of depreciation method as of 12/31/19. Part B - answer the question in the commentary section. 36 Part 1 -- Calculations 37 Straight-Line Depreciation 3 Part A: Construct formulas to calculate Depreciation Expense for each year, and Accumulated Depreciation and Book Value at the end of each year. Depreciation Expense Accumulated depreciation Book Value $62,000 1/2/2019 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 5 Part B: Using Excel function (fx SLN), determine the depreciation expense for: 57 Year 1 58 Year 9 59 Year 10 62 Units of Output (Units of Production) Depreciation Construct formulas to calculate Depreciation Expense for each year, and Accumulated Depreciation and Book Value at the end of each year. Apply the formula without considering whether you've depreciated too much or too little of the asset! Book 67 Actual Number of Units Produced Depreciation EXJENSE Accumulated depreciation $62,000 15,200 4,800 4,000 2,400 20,000 2,400 11,200 1,600 10,400 8,000 1/2/2019 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 83 Double-Declining Balance Depreciation 4 Part A: Construct formulas to calculate Depreciation Expense for each year & Accumulated Depreciation and Book Value at the end of each year. *Apply Mem u w ter courier and one of the esser Depreciation Accumulated Depreciation Book Value $62,000 1/2/2019 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0 Part B: Using Excel function (fx DDB), determine the depreciation expense for: 104 Year 1 105 Year 9 106 Year 10 * Part 2 -- Adjusting Entries & Commentary. Prepare the adjusting journal entry for depreciation on 12/31/19 three different ways: Straight-Line, Units of Production, and Double Declining Balance. Debit Credit Adjusting Entry: Straight-Line Acct Titles Adjusting Entry: Units of Prod. Adjusting Entry: DDB Are the calculations YOU made for depreciation expense for Double-Declining Balance and Units of Production (in part A) correct? (Answer Yes or No and explain why your calculations are correct or incorrect.)