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At the beginning of Year 1. Copland Drugstore purchased a new computer system for 290,000. It is expected to have a five-year life and a

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At the beginning of Year 1. Copland Drugstore purchased a new computer system for 290,000. It is expected to have a five-year life and a $40,000 salvage value. b. Record the purchase of the computer system and the depreciation expense for the first year under straight line and double- declining balance methods in a financial statements model like the following one: (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.) Answer is not complete. COPELAND DRUGSTORE Statements Model Income Statement Equity Revenue Expense Net Income Cash Flow Retained Earnings Balance Sheet Assets Book Cash Value of Comp Sys. (200,000) 290,000 Straight line depreciation (50.000) Double-declining balance depreciation (200,000) $ 50.000) 08 At the beginning of Year 1. Copland Drugstore purchased a new computer system for 290.000. It is expected to have a five-year life and a $40,000 salvage value. c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Date Credit No 1 Answer is complete and correct. General Journal Depreciation expanse Accumulated depreciation Debit 50,000 Yr. 1 50,000 (2) Double-declining balance depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date Credit Answer is not complete. General Journal Depreciation expense Accumulated depreciation Debit 116,000 1 Yr. 1 O 116,000 2 Yr. 2 69,600 Depreciation expense Accumulated depreciation 00 69,600 3 Yr. 3 Depreciation expense Accumulated depreciation olol 41.760 41,760 4 Yr. 4 Depreciation expense Accumulated depreciation 5 Yr. 5 No journal entry required

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