Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i'm sorry I know it's a little bit blurry but that's the best that I can do please help thank you Setup The New Times

i'm sorry I know it's a little bit blurry but that's the best that I can do please help thank you
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Setup The New Times Company purchased a new machine on January 1, 2017 at a cost of $120,000. The New Times Company paid $20,000 in cash at the date of purchase, and the remaining $100,000 was financed through a Note Payable. The machine has an estimated useful life of five years and an estimated salvage value of $15,000 at the end of five years. It is expected that the machine can produce 210,000 widgets during its useful life. Information for "Units-of-Production Depreciation Calculations As of the date of purchase. The New Times Company estimated that the machine could produce a total of 210,000 widgets during it's useful life. During the first three years after purchase, the machinery produced the following number of widgets per year: #of Units Year Manufactured 2017 80,000 2018 50,000 2019 30,000 160,000 Requirement Record the journal entry for the purchase of the machine on january 1, 2017 Debi Credit Date Account Description 1/1/17 Requirement Calculate the depreciation opens using the straine deresition method for each of the first three years (2017 through 2015) and the netbook value of the art of the end of the third year of December 31, 2019). Record the adjusting journal entry for the first year of depreciation (12/31/17 3 Years of Depreciation Calculation Straline Depreciation Accumulated Net Book Depreciation Values of as of 12/31 12/31 Depreciation Expense Debit Date Account Description 12/31/17 Cost Salvage Depr. Base Useful life 120,000 15.000 105.000 5 years Year 2017 2018 2019 Cost 120,000 120,000 120,000 Requirements Calculate the depreciation essing the nitroduction depreciation method for each of the first three years 2017 through 2019 and the netbook value of the as of the end of the third ymar asof December 31, 2019). Record the adjusting journal entry for the first year of depreciation (12/31/17 Cost Salvage Depr. Rase 120,000 15,000 105 000 Depreciation Expense Accumulated Net Book Depreciation Values of of 12/31 12/31 Date Debit Credit Account Description 12/31/17 Year 2017 2018 2019 Units Used 20,000 50,000 30,000 Year 2017 2018 2010 Cast 120,000 120,000 120,000 Useful lite 210,000 units Requirements Calculate the depreciation expense using the double-declinin depreciation method for each of the first three years (2017 through 2019 and the netbook value of the seas of the end of the third year (as of December 31, 2019). Record the adjusting journal entry for the first year of depreciation (12/31/12) Depreciation Expense Accumulated Net Book Depreciation Values of as of 12/31 12/31 Debit Ore Date Account Description 12/31/17 Cost Salvage Base Useful life 120,000 15,000 105,000 Year 2017 2018 2019 Cost 120.000 120.000 120.000 5 years + + Balance Sheet Income Statement + + - Accumulated Depreciation Equipment Depreciation Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

9th Edition

9780470128817

More Books

Students also viewed these Accounting questions

Question

Know how to prepare for an interview prior to an applicants arrival

Answered: 1 week ago