New lithographic equipment, acquired at a cost of $950,400 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $106,920. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment was sold for $154,682. 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 the manager chose the double- declining-balance method. Refer to the Chart of Accounts for exact wording of account titles. 3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $108,792 instead of $154,682. Refer to the Chart of Accounts for exact wording of account titles. 9:43 v2.cengagenow.com Instructions Chart of Accounts Starting Questions Journal ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supples 119 Prepaid Insurance 120 Land 123 Delivery Truck CHART OF ACCOUNTS General Ledger 124 Accumulated Depreciation-Delivery Truck 125 Equipment 126 Accumulated Depreciation- Equipment 1:30 Mineral Rights 131 Accumulated Depletion 132 Goodwil 133 Patents LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable REVENUE 410 Sales 610 Interest Revenue 620 Gain on Sale of Delivery Truck 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 523 Delivery Expense 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense- Equipment 533 Depletion Expense 534 Amortization Expense-Patents 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss on Sale of Delivery Truck 721 Loss on Sale of Equipment EQUITY 310 Common Stock 311 Retained Earings 312 Dividends Instructions Chart of Accounts Starting Questions Journal etermine the annual depreciation expense for each of the estimated five years of use, the accumulated preciation at the end of each year, and the book value of the equipment at the end of each year by (a) e straight-line method and (b) the double-declining-balance method. Round your answers to the nearest hole dollar. Enter all amounts as a positive numbers. Straight-line method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $ 23 10 5 Double-declining-balance method Year $ 2 3 4 Accumulated Depreciation, Depreciation Expense End of Year Book Value, End of Year Depreciation by two methods; sale of fixed asset Instructions Chart of Accounts Starting Questions Journal 2. On March 4, journalize the entry to record the sale assuming declining-balance method. Refer to the Chart of Accounts for e JOURNAL DATE DESCRIPTION 1 2 POST REE DEB 3. On March 4, journalize the entry to record the sale in (2), as $108,792 instead of $154,682. Refer to the Chart of Accounts I 2 DATE DESCRIPTION JOURNAL POST REF DEB