Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 10.3 Kansas Company purchased a machine to use in their business on January 1, 2012 at a cost of $100,000. The machine's estimated useful
Exercise 10.3
ofs Exercise 10.3 Kansas Company purchased a machine to use in their business on January 1, 2012 at a cost f$100,000. The machine's estimated useful life was 4 years, and the residual or salvage value is $10,000. It is also estimated that this machine will have a useful life of 45,000 machine hours. Usage of the machine was as follows: 10,000 machine hours in 2012, 8,000 machine hours in 2013, 14,000 machine hours in 2014, and 13,000 machine hours in 2015. Requirements 1. Prepare a depreciation schedule (with columns headings: Year, Computation, Depreciation Expense, Accumulated Depreciation, and Book Value) for years 2012 through 2015 under each of the following methods: a. Straight-Line b. Units-of-Production c. Double-Declining Balance. 2. For each of the three methods listed in part (a) prepare the December 31, 2012 journal entry to record depreciation. Also, show the balance sheet presentation of the machine at December 31, 2012 under each method Kansas Company purchased a machine to use in their business on January 1, 2012 at a cost of $100,000. The machine's estimated useful life was 4 years, and the residual or salvage value is $10,000. It is also estimated that this machine will have a useful life of 45,000 machine hours. Usage of the machine was as follows: 10,000 machine hours in 2012, 8,000 machine hours in 2013, 14,000 machine hours in 2014, and 13,000 machine hours in 2015.
Requirements
1. Prepare a depreciation schedule (with columns headings: Year, Computation, Depreciation Expense, Accumulated Depreciation, and Book Value) for years 2012 through 2015 under each of the following methods:
a. Straight-Line
b. Units-of-Production
c. Double-Declining Balance.
2. For each of the three methods listed in part (a) prepare the December 31, 2012 journal entry to record depreciation. Also, show the balance sheet presentation of the machine at December 31, 2012 under each method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started