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If anybody could please help me with this I would appreciate it, I'm completely lost. A On January 1, Year 1, a company purchased equipment.
If anybody could please help me with this I would appreciate it, I'm completely lost.
A On January 1, Year 1, a company purchased equipment. The details of the equipment purchase are below. Question Title (1) \begin{tabular}{lr|} \hline Original Cost & $112,000 \\ Estimated Residual Value & $28,000 \\ \hline Estimated Useful Life & 6 \\ \hline Estimated Units & 20,000 \\ Actual Units: & \\ Year 1 & 2,200 \\ Year 2 & 4,200 \\ Year 3 & 4,800 \\ Year 4 & 4,400 \\ Year 5 & 3,600 \\ Year 6 & 2,800 \\ \hline \end{tabular} IE 07-01 (Static) Using Excel to Calculate and Record Depreclation Expense under Varlous Methods [LO 7-4] Check Answers Check My Work Legend Graded cell: Leave blank if no answer is needed. Required: 1. Based on the information above, calculate Depreciation Expense, Accumulated Depreciation and the Book Value of the equipment, as well as the journal entry for depreciation in Year 3 : (a) Using the Straight-line method (b) Using the Double-Declining-Balance method (c) Using the Activity-Based method Requirement 1(a): Straight-Line Method (Use cells A2 to B15 from the given information above to complete this question.) Adjusting entry for depreciation in Year 3: Requirement 1(b): Double-Declining-Balance Method (Use cells A2 to B15 from the given information above to complete this question. Hint: Recall that the double-declining-balance rate is double the straight-line rate [= 2(1/ useful life ). Be sure to include a reference to the useful life, cell B6, in your formula for depreciation expense. Your formula for depreciation expense should ensure that book value does not go below estimated residual value.) Adjusting entry for depreciation in Year 3: \begin{tabular}{|ccc|} \hline Account & Debit & Credit \\ \hline Depreciation Expense & & \\ \hline Accumulated Depreciation & & \\ \hline \end{tabular} Requirement 1(c): Activity-Based Method (Use cells A2 to B15 from the given information above to complete this question. Hint: Recall that the activity-based depreciation rate = depreciable cost / total estimated units. Be sure to include a reference to estimated units, cell B7, in your formula for depreciation expense. Your formula for depreciation expense should ensure that book value does not go below estimated residual value.) Adjusting entry for depreciation in Year 3Step by Step Solution
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