On August 31, the balance sheet of Sheffeld Corp. showed Cash $11,000, Accounts Receivable $3,700, Supplies $600, Equipment $6,000, Accounts Payable \$5,600, Common Stock $15,000, and Retained Earnings $700, During September, the following transactions occurred. 1. Paid $2,350 cash for accounts payable due. 2. Collected $2,300 of accounts recelvable. 3. Purchased additional equipment for $1,950, paying $700 in cash and the balance on account. 4. Recognized revenue of $7,050, of which $3,000 is collected in cash and the balance is due in October. 5. Declared and paid a $450 cash dividend. 6. Paid salaries $2,350, rent for September $1,000, and advertising expense $100. 7. Incurred utilities expense for month on account $250. 8. Received $13,000 from Capital Bank on a 6-month note payable. Calculate the amount of depreciation expense that Novak should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, eg. 2, 125.) (1) Novak uses the straight-line method of depreciation. (2) Novak uses the declining-balance method. The rate used is twice the straight-line rate. (3) Novak uses the units-of-activity method and estimates that the useful life of the machine is 155,000 units. Actual usage is as follows: 2022,52,500 units; 2023,42,500 units; 2024,32,500 units; and 2025, 27,500 units. On August 31, the balance sheet of Sheffeld Corp. showed Cash $11,000, Accounts Receivable $3,700, Supplies $600, Equipment $6,000, Accounts Payable \$5,600, Common Stock $15,000, and Retained Earnings $700, During September, the following transactions occurred. 1. Paid $2,350 cash for accounts payable due. 2. Collected $2,300 of accounts recelvable. 3. Purchased additional equipment for $1,950, paying $700 in cash and the balance on account. 4. Recognized revenue of $7,050, of which $3,000 is collected in cash and the balance is due in October. 5. Declared and paid a $450 cash dividend. 6. Paid salaries $2,350, rent for September $1,000, and advertising expense $100. 7. Incurred utilities expense for month on account $250. 8. Received $13,000 from Capital Bank on a 6-month note payable. Calculate the amount of depreciation expense that Novak should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, eg. 2, 125.) (1) Novak uses the straight-line method of depreciation. (2) Novak uses the declining-balance method. The rate used is twice the straight-line rate. (3) Novak uses the units-of-activity method and estimates that the useful life of the machine is 155,000 units. Actual usage is as follows: 2022,52,500 units; 2023,42,500 units; 2024,32,500 units; and 2025, 27,500 units
