Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $4,800. The estimated useful life was five years, and the residual value was $500. Assume that the estimated productive life of the machine is 14,200 hours. Expected annual production is: year 1, 3,900 hours: year 2, 2,400 hours; year 3, 3,200 hours; year 4. 1.700 hours; and year 5, 3,000 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 $ 4,800 At acquisition 1 2 3 4 5 b. Units-of-production Year Depreciation Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 c. Double-declining-balance Year Depreciation Expense Accumulated Depreciation Book Value At acquisition 1 2 3 4 5 2. Assume NGS sold the hydrotherapy tub system for $2,100 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren

1st Edition

0538870850, 9780538870856

More Books

Students also viewed these Accounting questions

Question

How are the values for the mean squares computed?

Answered: 1 week ago