C8

[The following information applies to the questions displayed below.) At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $190,000. It is expected to have a five-year life and a $30,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. (2) Double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Compute the depreciation for each of the five years, assuming that the company uses straight-line depreciation. Straight-line depreciation for each year At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $190,000. It is expected to have a five-year life and a $30,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. (2) Double-declining-balance depreciation Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation Doublet Declining Balance Year 1 Year 2 Yoar 3 Your 4 Year 5 (The following information applies to the questions displayed below.) At the beginning of Year 1. Copeland Drugstore purchased a new computer system for $190,000. It is expected to have a five-year life and a $30,000 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 horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Statement of Cash Flows COPELAND DRUGSTORE Horizontal Statements Model Balance Sheet Income Statument Stockholders Assets Equity Revenue Net Income Expenses - Cash Book Value of Retained Computer Earnings (190,000) 190,000 0 0 Straight-line depreciation (30,000) (30,000) $ ol- 30,000 30,000 Double-declining-balance depreciation 0- 01 (190,000) [The following information applies to the questions displayed below.) At the beginning of Year 1. Copeland Drugstore purchased a new computer system for $190,000. It is expected to have a five-year life and a $30,000 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 (2) Double-declining balance depreciation. Complete this question by entering your answers in the tabs below. ReqC1 Reg C2 Prepare the Joumal entries to recognize depreciation for each of the five years, assuming that the company uses straight-line depreciation (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Date No 1 Debit Credit Yr. 1 General Journal Depreciation expense Accumulated depreciation 35,000 DE MAR