F G H J M N P R 123456789 4 B Part 2 2 1/March/2017 31/April/2017 C D E Answer all the questions in the spaces provided (Yellow cells) Bobby Inc. ordered a machine at a purchase price of $ On delivery, the company paid installation costs relating to the machine amounting to This machine has an estimated residual value of $ 7,200.00 400.00 $ 600.00 This machine has an estimated useful life of 5.00 Years Required: 1 Complete a depreciation schedule for each of the alternative methods: [8 Marks] 10 Method of Depreciation 11 a) Straight-line Method Year Depreciation expense Book value 12 At acquisition 13 1 14 2 15 3 16 17 4 5 18 19 Method of Depreciation b) Double-Declining Balance 20 Year Depreciation expense Book value 21 At acquisition 22 1 23 2 24 3 25 26 4 5 27 28 2 29 [2 Marks] Assume that Bobby Inc. should report for the year ended December 31: Prepare the journal entry to record the depreciation at the end of 2017, assuming the Double-declining-balance method is applied. 30 31 32 Date 31/Dec/17 General Journal Debit Credit 33 34 35 36 3 37 [5 Marks] Prepare the journal entries to update the depreciation expense and record the disposal: Assume that the machine was sold on September 30, 2020, for $ 1,350.00 38 INSTRUCTION Part 2 Part 3 Further assume that the straight-line method is applied. Part 1 Part 4 + E F G H ] K M N P Q RA A B C 16 17 18 19 20 21 22 23 24 25 26 D 4 5 Method of Depreciation b) Double-Declining Balance Year Depreciation expense Book value At acquisition 1 2 3 4 5 27 28 2 Assume that Bobby Inc. should report for the year ended December 31: 29 [2 Marks] Prepare the journal entry to record the depreciation at the end of 2017, assuming the Double-declining-balance method is applied. 30 31 32 Date 31/Dec/17 General Journal Debit Credit 33 34 35 36 3 37 [5 Marks] 38 Prepare the journal entries to update the depreciation expense and record the disposal: Assume that the machine was sold on September 30, 2020, for Further assume that the straight-line method is applied. $ 1,350.00 39 40 41 Date 30/Sep/20 General Journal Debit Credit 42 43 44 45 46 47 48 49 50 51 52 53 54 INSTRUCTION Part 1 Part 2 Part 3 Part 4 +