Bill?s Shirt Corp. paid $190,000 for machinery on July 1, 2014. The equipment has an estimated useful life of 5 years and a residual value of $10,000.

Using the straight-line method:

Prepare the journal entry to record depreciation for 2014. (Remember to consider the company purchased the asset on July 1^st.)

Prepare the journal entry to record depreciation for 2015.

What amount would appear on the 2014 financial statements regarding:

Depreciate Expense $_______

Accumulated Depreciation $______

What amount would appear on the 2015 financial statements regarding:

Depreciate Expense $_______

Accumulated Depreciation $______

Compute the book value of the equipment at December 31,

2014 $________

2015 $________

ACFI-100 NAME_____________________________ Quiz #4 Bill's Shirt Corp. paid $190,000 for machinery on July 1, 2014. The equipment has an estimated useful life of 5 years and a residual value of $10,000. A. Using the straight-line method: (1) Prepare the journal entry to record depreciation for 2014. (Remember to consider the company purchased the asset on July 1st.) (2) Prepare the journal entry to record depreciation for 2015. (3) What amount would appear on the 2014 financial statements regarding: Depreciate Expense $_______ Accumulated Depreciation $______ (4) What amount would appear on the 2015 financial statements regarding: Depreciate Expense $_______ Accumulated Depreciation $______ (5) Compute the book value of the equipment at December 31, 2014 $________ 2015 $________