accounting 101. i need some help with my homework. chapter 10
Brief Exercise 10-4 Corales Company acquires a delivery truck at a cost of $49,000. The truck is expected to have a salvage value of $15,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years using the straight-line method. Year 1 Year 2 Annual depreciation expense $ $ Exercise 10-7 Linton Company purchased a delivery truck for $29,000 on January 1, 2017. The truck has an expected salvage value of $1,500, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,300 in 2017 and 13,200 in 2018. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense per mile Compute depreciation expense for 2017 and 2018 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense 2017 2018 (1) Straight-line method $ (2) Units-of-activity method $ (3) Declining-balance method Assume that Linton uses the straight-line method. Prepare the journal entry to record 2017 depreciation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,125.) Account Titles and Explanation Debit Credit Assume that Linton uses the straight-line method. Show how the truck would be reported in the December 31, 2017, balance sheet. (Round answers to 0 decimal places, e.g. 2,125.) LINTON COMPANY Partial Balance Sheet $Do It! Review 10-2a On January 1, 2017, Emporia Country Club purchased a new riding mower for $29,000. The mower is expected to have an 5-year life with a $4,000 salvage value. What journal entry would Emporia make at December 31, 2017, if it uses straight-line depreciation? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31Brief Exercise 230 Iverson Company purchased a delivery truck for $45,000 on January 1, 2016. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2016 and 22,000 miles in 2017. Compute depreciation expense using the units-of-activity method for the years 2016 and 2017. Depreciation expense for 2016 Depreciation expense for 2017Brief Exercise 231 Weller Company purchased a truck for $66,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $6,000 at the end of that time. During the second year the truck was driven 27,000 miles. Compute the depreciation for the second year under each of the methods below and place your answers in the blanks provided. Units-of-activity Double-declining-balanceExercise 246 The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2,000 hours in year 5. Compute the annual depreciation for each of the five years under straight-line and units-of-activity methods. Straight-line Units-of-Activity Year 1 Year 2 Year 3 Year 4 Year 5 Total If you were the administrator of the clinic, which method would you deem as most appropriate? Which method would result in the lowest reported income in the first year? 4 Which method would result in the lowest total reported income over the five-year period?Brief Exercise 229 Iverson Company purchased a delivery truck for $45,000 on January 1, 2016. The truck was assigned an estimated useful life of 5 years and has a residual value of $10,000. Compute depreciation expense using the double-declining-balance method for the years 2016 and 2017. Depreciation expense for 2016 Depreciation expense for 2017
