Instructions Use the following data to complete the depreciation calculations: Equipment Purchased on 1/2/2019 Cost of Equipment Expected Life (for SL and DDB) Expected Life (for Units of Production) Expected Salvage (or Residual Value) $62,000 10 years 75,000 product units $7,000 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 1, 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 asset! 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 asset! 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. Part 2: Part A - complete adjusting entries for each type of depreciation method as of 12/31/19. Part B - answer the question in the commentary section. 40 42 43 44 45 46 47 36 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. 41 Depreciation Accumulated Book Expense Depreciation Value 1/2/2019 $62,000 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 53 Year 10 54 55 56 Part B: Using Excel function (fx SLN), determine the depreciation expense for: 57 Year 1 58 Year 9 59 Year 10 48 49 50 51 52 62 Units of Output (Units of Production) Depreciation 63 Construct formulas to calculate Depreciation Expense for each year, and 64 Accumulated Depreciation and Book Value at the end of each year. 65 Apply the formula without considering whether you've depreciated too much or too little of the asset! 66 67 Actual Number of Depreciation Accumulated Book 68 Units Produced Expense Depreciation Value 69 1/2/2019 $62,000 70 15,200 Year1 71 4,800 Year 2 72 4,000 Year 3 73 2,400 Year 4 74 20,000 Year 5 75 2,400 Year 6 76 11,200 Year 7 77 1,600 Year 8 78 10,400 Year 9 79 8,000 Year 10 80 1 82 83 Double-Declining Balance Depreciation 84 Part A: Construct formulas to calculate Depreciation Expense for each year & Accumulated Depreciation and Book Value at the end of each year. 86 Apply the formula without considering whether you've depreciated too much or too little of the asset! 85 87 88 89 90 Depreciation Expense Accumulated Depreciation Book Value $62,000 91 92 93 94 95 96 1/2/2019 Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 97 98 99 100 101 102 103 Part B: Using Excel function (fx DDB), determine the depreciation expense for: 104 Year 1 105 Year 9 106 Year 10 107 108 109 Part 2 -- Adjusting Entries & Commentary. 110 111 A. 112 113 Prepare the adjusting journal entry for depreciation on 12/31/19 three different ways: Straight-Line, Units of Production, and Double Declining Balance. Acct Titles Debit Credit Adjusting Entry: Straight-Line 114 115 116 117 Adjusting Entry: Units of Prod. 118 119 120 121 122 123 124 Adjusting Entry: DDB 125 126 B. 127 128 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.) 129 130 131 132 133 134 135