Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Only question b please, Thank you! Sheridan Productions Corp. purchased equipment on March 1, 2021, for $64.000. The company estimated the equipment would have a

image text in transcribedimage text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Only question b please, Thank you!

Sheridan Productions Corp. purchased equipment on March 1, 2021, for $64.000. The company estimated the equipment would have a useful life of three years and produce 10,000 units, with a residual value of $10,000. During 2021, the equipment produced 4,000 units. On November 30, 2022, the machine was sold for $18,000 and had produced 6,400 units that year. Record all the necessary journal entries for the years ended December 31, 2021 and 2022, using the following depreciation methods: (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round the depreciation rate in the double-diminishing-balance method to the nearest whole percent, e.g. 43% and round depreciation per unit in the units-of- production depreciation method to 2 decimal places, eg, 2.25 and final answers to decimal places, e.g. 5,275.) (1) Straight-line Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 64000 Cash 64000 Dec. 31 Depreciation Expense 15000 Accumulated Depreciation - Equipment 15000 2022 Nov. 30 Depreciation Expense 16500 Accumulated Depreciation - Equipment 16500 (To record depreciation expense) Nov. 30 Cash 22500 Accumulated Depreciation - Equipment 31500 Loss on Disposal 10000 Equipment 64000 (To record the sale of machine) (2) Double-diminishing-balance Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 64000 Cash 64000 Dec. 31 Depreciation Expense 35200 Accumulated Depreciation - Equipment 35200 2022 Nov. 30 Depreciation Expense 17424 Accumulated Depreciation - Equipment 17424 (To record depreciation expense) Nov. 30 Cash 18000 Accumulated Depreciation - Equipment 52624 Gain on Disposal 6642 Equipment 64000 (To record the sale of machine) (3) Units-of-Production Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 64000 Cash 64000 Dec. 31 Depreciation Expense 21600 Accumulated Depreciation - Equipment 21600 2022 Nov. 30 Depreciation Expense 34560 Accumulated Depreciation - Equipment 34560 (To record depreciation expense) Nov. 30 Cash 18000 Accumulated Depreciation - Equipment 56160 Gain on Disposal 10160 Equipment 64000 (To record the sale of machine) (b) Complete the following schedule for each method of depreciation and compare the total expense over the two-year period. (Round answers to decimal places, e.g. 5,275.) Straight- Line Double-Diminishing- Balance Units-of- Production Depreciation expense 2021 $ GA $ 2022 Total depreciation expense for two years + Loss (or - gain) on disposal Net expense for two years $ $ (A

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

Students also viewed these Accounting questions

Question

t testing

Answered: 1 week ago