Pool Corporation Inc. is the worlds largest wholesale distributor of swimming pool supplies and equipment. Assume Pool Corporation purchased, for cash, new loading equipment for the warehouse on January 1, 2020 at an invoice price of $72,000. It also paid $2,000 for freight on the equipment, $1,300 to prepare the equipment for use in the warehouse, and $800 for insurance to cover the equipment during operation in 2020. The equipment was estimated to have a residual value of $3,300 and be used over three years or 24,000 hours.

Required:

1. Prepare a journal entry for purchase of the equipment, freight, preparation costs, and insurance on January 1, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Compute the depreciation schedule assuming Pool Corporation uses the straight-line method.

3. Compute the depreciation schedule assuming Pool Corporation uses the double declining-balance method.

4. Compute the depreciation schedule assuming Pool Corporation uses the units-of-production method, with actual production of 8,000 hours in 2020, 7,400 hours in 2021, and 8,600 hours in 2022.

5. On December 31, 2021, the equipment was sold for $22,500. Prepare a journal entry for sale of the equipment assuming the company used the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet Record the purchase of equipment with related costs. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2020 Record entry Clear entry View general journal Year Depreciation Expense Accumulation Depreciation Carrying Amount 2020 2021 2022 Year Depreciation Expense Accumulation Depreciation Carrying Amount 2020 2021 2022 Year Depreciation Expense Accumulation Depreciation Carrying Amount 2020 2021 2022 Journal entry worksheet Record depreciation expense. Note: Enter debits before credits. Transaction General Journal Debit Credit (1) Record entry Clear entry View general journal Journal entry worksheet Record sale of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit (2) Record entry Clear entry View general journal