ACCOUNTING 2113 (FINANCIAL ACCOUNTING) DEPRECATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2020 Asset Acquisition The following Assets were acquired on January 1, 2020 by Cheryl's Furniture Company during the current year ASSET Computer System Manufacturing Equipment Delivery Truck Estimated Useful Life 5 Years 6 Years 4 Years TOTAL COST $115,000 300,000 55,000 Estimated Salvage Value $12,500 30,000 7,500 Total $470,000 - Estimated Useful Life In Activity as follows: Computer System 100,000 Hours Manufacturing Equipment 20,000 Hours Delivery Truck 200,000 Miles REQUIRED 1. Calculate Depreciation Expense for the first three (3) years for each Asset Using the following Depreciation Methods: (a) STRAIGHT-UNE METHOD (b) DOUBLE DECLINING-BALANCE METHOD (C) ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD ASSET ACTIVITY Computer System Year 1- 12,000 Hours: Year 2 - 16,000 Hours: Year 3 -20,000 Hours Manufacturing Equipment Year 1- 2,400 Hours; Year 2-3,200 Hours; Year 3 - 4800 Hours Delivery Truck Year 1-68400 Miles: Year 2-83,200 Miles: Year 3 - 48,800 Miles 22. Make the Year-End Journal Entry (Adjusting Entry) for Year 1 only for each of the three (3) Depreciation Methods 3 (One (1) Single Journal Entry Only For Each Depreciation Method) ACCOUNTING 2113 (FINANCIAL ACCOUNTING) DEPRECIATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2020 Manufaturing Equipment Computer System Delivery Truck STRAIGHT-LINE METHOD YEAR 1 YEAR 2 YEAR 3 DOUBLE DECLINING-BALANCE METHOD YEAR 1 YEAR 2 YEAR 3 ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD YEAR 1 YEAR 2 YEAR 3 CHERYLL'S FURNITURE COMPANY GENERAL JOURNAL For The Year Ended December 31, 2020 Date Accounts/Description STRAIGHT-LINE DEPRECIATION Debits Credits December 31, 2020 Depreciation Expense Accumulated Depreciation DOUBLE DECLINING-BALANCE DEPRECIATION December 31, 2020 Depreciation Expense Accumulated Depreciation ACTIVITY-BASED (UNITS OF PRODUCTION) DEPRECIATION December 31, 2020 Depreciation Expense Accumulated Depreciation