Depreciation by two methods; sale of fixed asset Chart of Accounts Starting Questions Journal Instructions New lithographic equipment, acquired at a cost of $843,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $94,860 The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double declining balance method was selected In the first week of the fifth year, on March 4, the equipment was sold for $140,199 Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation ar the end of each year, and me book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method Round your answers to the nearest whole dollar 2. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of accountates. Starting Ouestions Determine the annual depreciation expense for each of the estimated five years of use the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each war by (a) the straight line method and (b) the double declining balance method Round your answers to the nearest whole dotlar Enter all amounts as a positive numbers a. Suaighting method Accumulated Depreciation, End of Year Year Depreciation Expense Book Value, End of Year 1 s 2 3 b. Double-declining balance method Accumulated Depreciation, End of Year Year Depreciation Expense Book Value, End of Year 1 S $ 2 3 5 tasis of the data presented to the manager, the double declining balance method was selected, In the first week of the fifth year, on March 4, the equipment was sold for $140,199 Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation ar the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining balance method. Round your answers to the nearest whole dollar. 2. Journalize the entry to record the sale assuming the manager chose the double-declining-balance method. Refer to the Chart of Accounts for exact wording of account titles. 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $93,349 instead of 5140,199. Refer to the Chart of Accounts for exact wording of account titles. Journal 2. On March 4. journalize the entry to record the sale assuming the manager chose the double-declining balance method. Refer to the Charrof Accounts for exact wording of account des PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DERIT CREDIT ASSETS LUBILITIES EQUITY 1 3.On March 4. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $93,349 instead of 5140,199. Retro the Chart of Accounts for exact wording of account des PAGE JOURNAL ACCOUNTING EQUATION EQUI LUBILITIES DESCRIPTION CREDIT ASSETS DEBIT POST. REF DATE Journal exact wording of account des PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION DEBIT POST. REF LILITIES CREDIT ASSETS EQUE 1 2 5
