Journal 2 on March 4, the erary to record the sale assung that the manager chose the double-decliving-balewe method. Ruler to the chart or accounts for the exact wording of the account thes. CNOW journals do not use Aires for journal explanations. Every Ane on a journal page is wedior debit car crediterios. CNOWjoumat will automatically indent a credercntry when a credir amount is entered PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 3 on March ( the entry to record the sale in (2) assuming thar the squiment was sold for $87,105 instead of 3130.585. Relar to the chart of accounts for the exact wording of the account es. CNOWjournals do not use Nines for journal explanations. Every Me on fournis page is used for bit or credi entries. CNOW journals will automatically index a credit entry when a crecitanout is entered PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LABILITIES EQUITY 1 CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory EXPENSES 117 Supplies 510 Cost Merchandise Sold 119 Prepaid Insurance 520 Salaries Expense 120 Land 123 Delivery Truck 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 524 Repairs and Maintenance Expense 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation Equipment 529 Selling Expenses 531 Rent Expense 130 Mineral Rights 131 Accumulated Depletion 532 Depreciation Expense-Equipment 533 Depletion Expense 132 Goodwill 133 Patents 534 Amortization Expense-Patents 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 539 Miscellaneous Expense 211 Salaries Payable 213 Sales Tax Payable 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment 214 Interest Payable 215 Notes Payable EQUITY 310 Owner's Capital First Questions 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. Round your answers to the nearest whole dollar. a. Straight-line method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 $ N 3 4 5 b. Double-declining-balance method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 $ $ $ 2 3 4 5 Instructions New lithographic equipment, acquired at a cost of $772,800 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $86,940. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $130,585. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. Round your answers to the nearest whole dollar. 2. Journalize the entry to record the sale assuming that the manager chose the double-declining-balance method. * 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $87,105 instead of $130,585.* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered
