Double Declining Accounting of Fixed Assets

On October 1, 2011 Wild Welding Incorporated purchased equipment for $475,000 cash. Wild Welding Inc intends to use the machine for 10 years and estimates its resale value at the end of the 10 years to be $40,000. Wild Welding uses the double declining balance method to depreciate the organizations equipment.

a.) Prepare the journal entry that Wild Welding Inc would need to account for the purchase of the equipment on October 1, 2011. b.) Prepare the journal entry that Wild Welding Inc would need to account for FY2011 use of the equipment on December 31,2011{Be Careful-Think about how many months the equipment has been used in FY2011}.

c.) Prepare the journal entry that Wild Welding Inc would need to account for FY2012 use of the equipment on December 31,2012.

d.) Prepare the journal entry that Wild Welding Inc would need to account for FY2013 use of the equipment on December 31,2013.