Instructions Chart of Accounts| First Question | General Journal X First Question X Instructions Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their 4-year service life. Golden Sales managers want to evaluate a1. Compute the annual straight-line the options of depreciation. depreciation. Required: $ a. Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be posted at the end of each of the years.* b. Write the journal entries for each year of the service life for these assets using the double- declining balance method. * *Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts X CHART OF ACCOUNTS General Journal X Golden Sales General Ledger a2. Provide the sample depreciation journal entry to be posted on December 31. Refer to the Chart of Accounts for exact wording of account titles. ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue PAGE 1 112 Accounts JOURNAL ACCOUNTING EQUATION Receivable EXPENSES DATE DESCRIPTION POST DEBIT CREDIT ASSETS LIABILITIESQUITY 114 Interest Receivable 510 Cost of Goods 115 Notes Receivable Sold 1 116 Inventory 520 Salaries Expense 2 117 Supplies 521 Advertising 119 Prepaid Insurance Expense 120 Land 522 Supplies b. Write the journal entries for each year of the service life for these assets using the double- 121 Sales Equipment Expense declining balance method on December 31. Refer to the Chart of Accounts for exact wording of 122 Accumulated 523 Delivery Expense Depreciation-Sales account titles. 524 Rent Expense Equipment 525 Insurance 132 Goodwill Expense PAGE 1 133 Patents 531 Repairs and ACCOUNTING EQUATION Maintenance JOURNAL LIABILITIES Expense DESCRIPTION POST. DATE REF. DEBIT CREDIT ASSETS LIABILITIESQUITY 210 Accounts Payable 541 Depreciation 211 Salaries Payable Expense-Sales 213 Sales Tax Payable Equipment 214 Interest Payable 544 Amortization Expense-Patents 215 Notes Payable 591 Miscellaneous DO V O MI A W N H Expense EQUITY 710 Interest Expense 310 Common Stock Retained Earnings 312 DividendsJournalize the following transactions: Dec. 31 The accrued product warranty expense for the year is estimated to be 1.5% of sales. Sales for the year totaled $7,760,000. 31 The accrued vacation pay for the year is estimated to be $46,000. Paid Reliable Insurance Co. $85,000 as fund trustee for the pension plan. The 31 annual pension cost is $109,000. If an amount box does not require an entry, leave it blank. Dec. 31 Dec. 31 Dec. 31