Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with journal entry, thanks! 3 methods: straight line method, units of production method, double declining balance method Required information CC9-1 Accounting for the
need help with journal entry, thanks!
3 methods: straight line method, units of production method, double declining balance method
Required information CC9-1 Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $16,000. The estimated useful life was five years and the residual value was $1,000. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,400 hours, year 2, 2,300 hours; year 3, 2,200 hours; year 4, 2,100 hours, and year 5, 1,000 hours. CC9-1 Part 2 2. Assume NGS sold the hydrotherapy tub system for $4,800 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started