Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In recent years, Blossom Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of

image text in transcribedimage text in transcribedimage text in transcribed

In recent years, Blossom Corporation has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Residual Value Useful Life (in years) Machine Acquired Cost Depreciation Method 1 Jan. 1, 2018 $101,200 $11,600 5 Straight-line 2 July 1, 2019 81,250 9,520 5 Diminishing-balance 3 Nov. 1, 2019 66,430 6,550 6 Units-of-production For the diminishing-balance method, Blossom Corporation uses double the straight-line rate. For the units-of-production method, total machine hours are expected to be 24,950. Actual hours of use in the first 3 years were: 2019, 420; 2020, 4,440; and 2021, 5,500. Prepare separate depreciation schedules for each machine. Prepare the schedule for all years, information permitting. (Round depreciation per unit to 2 decimal places, e.g. 5.20 and answers to the nearest whole dollar, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) Machine 1: Straight-line depreciation Calculation Depreciable Amount Depreciation Rate # of months Depreciation Expense Acci Dep Year 2018 $ % $ $ 2019 % 2020 % Depreciable Amount Depreciation Rate # of months Depreciation Expense Acci Dep Year 2018 $ % $ $ 2019 % 4 2020 % 4 2021 % 2022 % Machine 2: Diminishing-balance depreciation Calculation Carrying Amount Beg. of Year Depreciation Rate # of months Depreciation Expense Year Dep 2019 $ % $ $ 2020 % + 2021 % 2022 % 2023 % Machine 3: Units-of-production depreciation 2023 Machine 3: Units-of-production depreciation Calculation End Units-of- Production Depreciation Cost/Unit Depreciation Expense Accumulated Depreciation Year 2019 $ tA $ 2020 2021

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 And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

1618533592, 9781618533593

More Books

Students also viewed these Accounting questions

Question

Explain the importance of prioritizing training and HRD needs

Answered: 1 week ago