machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16

machine 2: cost 80,000 salvage value 10,000 useful life 8 years purchased 1/1/13

machine 3: cost 78,000 salvage value 6,000 useful life 6 years = 24,000 hours purchased 1/1/18

Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning the machines is summarized below. Useful Life in Years Machine Acquired 7/1/16 1/1/13 1/1/18 Cost $76,000 $80,000 $78,000 Salvage Value $6,000 $10,000 $6,000 Depreciation Method Straight-line Declining balance Units-of-activity Notes: For the declining balance method, the company uses the double declining rate of the straight-line rate). For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years are shown on the depreciation schedule. Instructions: 1 For each machine, complete a depreciation schedule that records annual depreciation expense, accumulated depreciation, and book value. 2 Journalize the depreciation adjusting entry for all 3 machines at December 31, 2020. Check figures: Machine 1 accumulated depreciation at end of Year 5 = $31,500 Machine 2 book value at start of Year 4 = $33,750 Machine 3 depreciation expense for Year 1 = $3,000