Instructions Koffman's Warehouse purchased a forklift on January 1, 2016, for $6,000. The forklift is expected to last for five years and have a residual value of $600. Koffman's uses the doubledeclining-balance method for depreciation. Required: Chart of Accounts veneral Leuger 1. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklift's life. 2. Prepare the journal entry to record depreciation expense for 2016. 3. Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double-declining balance method? ASSETS REVENUE 111 Cash 411 Sales Revenue First Question 121 Accounts Receivable 141 Inventory EXPENSES 1. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklift's life. 152 Prepaid Insurance 500 Cost of Goods Sold 154 Supplies 521 Salaries and Wages Expense 174 Equipment 532 Utilities Expense Additional Instructions 179 Accumulated Depreciation 533 Insurance Expense Year Annual Depreciation Accumulated Depreciation Book Value 534 Rent Expense 2016 $ $ LIABILITIES 2017 537 Supplies Expense 541 Depreciation Expense 211 Accounts Payable 2018 231 Salaries and Wages Payable 551 Advertising Expense 2019 235 Notes Payable 559 Miscellaneous Expenses 2020 261 Income Taxes Payable 810 Interest Expense 910 Income Tax Expense EQUITY 311 Capital Stock 331 Retained Earnings General Journal 2. Prepare the journal entry with the impact on the financial statements to record depreciation expense for 2016. General Journal Instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 2 Final Question Refer to Exhibit 8-2. What factors may have influenced Koffman to use the double-declining balance method? of the asset with the revenues produced by the asset. Koffman may also choose this method because it allows depreciation to be Koffman may believe that the double-declining-balance method best taken in the early years of the asset life and thus taxes until the later years