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Exercise 6-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 6-2 6-3 At the beginning of Year 1. Copeland Drugstore purchased a new computer

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Exercise 6-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 6-2 6-3 At the beginning of Year 1. Copeland Drugstore purchased a new computer system for $240,000. It is expected to have a five-year life and a $40,000 salvage value Required o. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation (2) Double-declining-balance depreciation 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 financial statements model Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 RegB --- 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 financial statements model. Complete this question by entering your answers in the tabs below. Reg A1 Reg AZ Reg Compute the depreciation for each of the five years, assuming that the company uses straight line depreciation, Straight line Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Reg A2 > Complete this question by entering your answers in the tabs below. Req A1 Reg A2 ReqB Compute the depreciation for each of the five years, assuming that the company uses double declining balance depreciation (Leave no cells blank - be certain to enter "o" wherever required) Double-Declining Balance Year 1 Year 2 Year 3 Year 4 Year 5 Req A1 Reg A2 Req B Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double-dedining balance methods in a financial statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry) Show less a Balance Sheet COPELAND DRUGSTORE Horizontal Statements Model Income Statement Stockholders Equity Net Revenue Expenses Retained Income Earnings Assets Statement of Cash Flows Book Value of Cash Computer System Purchase of computer system Straight-Line Depreciation Double-Declining-Balance Depreciation 1

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