Instructions Use the following data to complete the depreciation calculations Equipment Purchased on 1/2/2020 Cost of Equipment $150,000 Expected life (for SL and DB) 10 years Expected life (for Units of Production) 110,000 product units Expected salvage for Residual Vakio $18,000 Part 1: Straight-Line depreciation Part A - use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Part B - using the Excel function (click on fx, choose SLN, fill in the arguments screen), calculate the depreciation expense for years i, 9 and 10. Units of Production (Units of Output) depreciation Use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas In Year 10 without considering whether you've depreciated too much or too little of the assett Note: there is no Excel fx for Units of Production depreciation. Double Declining Balance depreciation Part A-use Excel formulas to calculate depreciation expense, accumulated depreciation, and book values at 12/31 for each year. Apply your formulas in Year 10 without considering whether you've depreciated too much or too little of the asceti Part B - using the Excel function (click on fx, choose DDB, fill in the arguments screen), calculate the depreciation expense for years 1, 9 and 10. TER Cevap General OS Paste a. A- II Merge & Center - $ % 9 83 Conc Form Clipboard 5 Font Alignment Number A2 Part 2: Part A - complete adjusting entries for each type of depreciation method as of 12/31/20. Part B - answer the question in the commentary section. 34 40 41 42 35 38 Part 1 Calculations 37 Straight Line Depreciation 38 Part A: Construct formulas to calculate Depreciation Expense for each year, and 39 Accumulated Depreciation and Book Value at the end of each year. Depreciation Accumulated Book Expense Depreciation Value 143 1/2/2020 $150,000 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 52 Year 9 Year 10 54 45 46 47 48 49 50 51 56 se Part B: Using Excel function (fx SLN), determine the depreciation expense for: 57 Year 1 58 Year 9 59 Year 10 (Units of Production) Depreciation Construct formulas to calculate Depreciation Expense for each year, and Accumulated Depreciation and Book Value at the end of each year. Apply the formula without considering whether you've depreciated too much or too little of the asset! Actual Number of Units Produced Accumulated Depreciation Book Value $150,000 15,200 4,800 4,000 2,400 20,000 2,400 11,200 1,600 10,400 8,000 Depreciation Expense 1/2/2020 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 PartA: Construct formulas to calculate Depreciation Expense for each year & Accumulated Depreciation and Book Value at the end of each year. Apply the formula without considering whether you've depreciated too much or too little of the asset Accumulated Depreciation Book Value $150,000 Depreciation Expense 1/2/2020 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Part B: Using Excel function (fx DDB), determine the depreciation expense for: Year 1 Year 9 Year 10 Part 2 - Adjusting Entries & Commentary. Prepare the adjusting journal entry for depreciation on 12/31/20 three different ways: Straight Line, Units of Production, and Double Declining Balance. Acct Titles Debit Credit Adjusting Entry: Straight-Line Adjusting Entry: Units of Prod. Adjusting Entry: DDB B. Are the calculations you made for depreciation expense for Double-Declining Balance and Units of Production (in part A) correct? (Answer Yes or No and explain why your calculations are correct or incorrect
