Nicoles 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 $5,800. The estimated useful life was five years, and the residual value was $300. Assume that the estimated productive life of the machine is 18,200 hours. Expected annual production is: year 1, 4,900 hours; year 2, 2,900 hours; year 3, 4,200 hours; year 4, 2,200 hours; and year 5, 4,000 hours.
Required: 1. Complete a depreciation schedule for each of the alternative methods.
(Enter all values as positive amount. Round your final answers to nearest whole dollar amount.)
a. Straight-line
b. Units-of-production c.
Double-declining-balance
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 $5,800. The estimated useful life was five years, and the residual value was $300. Assume that the estimated productive life of the machine is 18,200 hours. Expected annual production is: year 1, 4,900 hours; year 2, 2,900 hours; year 3, 4,200 hours; year 4, 2,200 hours; and year 5, 4,000 hours. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount. Round your final answers to nearest whole dollar amount.) a. Straight-line Year Depreciation Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 b. Units-of-production Year Depreciation Expense Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 c. Double-declining-balance Year Depreciation Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 2. Assume NGS sold the hydrotherapy tub system for $2,400 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Straight-line method: View transaction list Journal entry worksheet Record the entry to account for the disposal of the asset using straight line 2. Assume NGS sold the hydrotherapy tub system for $2,400 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Straight-line method: View transaction list Journal entry worksheet A Record the entry to account for the disposal of the asset using straight line method. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general Journal Units-of-production method: View transaction list Journal entry worksheet A Record the entry to account for the disposal of the asset using Units-of- production method. Note: Enter debits before credits. Transaction General Journal Debit Credit 02 Record entry Clear entry View general Journal Double-declining-balance method: View transaction list Units-of-production method: View transaction list Journal entry worksheet Record the entry to account for the disposal of the asset using Units-of- production method. Note: Enter debits before credits. Transaction General Journal Debit Credit 02 Record entry Clear entry View general Journal Double-declining-balance method: View transaction list Journal entry worksheet Record the entry to account for the disposal of the asset using Double- declining balance method. Note: Enter debits before credits. Transaction General Journal Debit Credit 03 Record entry Clear entry View general Journal
