Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, can someone please help me with the bottom units of production depreciation schedule that I have highlighted in yellow? Thanks. Mama's Fried Chicken bought
Hello, can someone please help me with the bottom units of production depreciation schedule that I have highlighted in yellow? Thanks.
Mama's Fried Chicken bought equipment on January 2, 2018, for $39,000. The equipment was expected to remain in service for four years and to operate for 11,000 hours. At the end of the equipment's useful life, Mama's estimates that its residual value will be $6,000. The equipment operated for 1,100 hours the first year, 3,300 hours the second year, 4,400 hours the third year, and 2,200 hours the fourth year. Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Book Date Cost Cost Life Expense Depreciation Value 1-2-2018 $ 39,000 $ 39,000 12-31-2018 $ 33,000 1 4 years = $ 8,250 $ 8,250 30,750 12-31-2019 33,000 4 years 8,250 16,500 22,500 12-31-2020 33.0001 4 years 8,250 24,750 14.250 12-31-2021 33.000 1 4 years 8,250 33,000 6,000 Before calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. Residual value )4 Useful life in units Cost 39,000 Depreciation per unit 3 ($ 6,000 ) 11,000 Book Value Prepare a depreciation schedule using the units-of-production method. Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation 1-2-2018 39000 12-31-2018 12-31-2019 3 x 12-31-2020 12-31-2021 3 x 39000 X 11Step 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