Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Pool Corporation purchased for cash new loading equipment for the warehouse on January 1 of Year 1, at an invoice price of $73,500. It also paid $2,200 for freight on the equipment, $1,400 to prepare the equipment for use in the warehouse, and $850 for insurance to cover the equipment during operation in Year 1. The equipment was estimated to have a residual value of $3,400 and be used over three years or 24,500 hours. Required: 1. Record the purchase of the equipment, freight, preparation costs, and insurance on January 1 of Year 1. 2. Create a depreciation schedule assuming Pool Corporation uses the straight-line method. 3. Create a depreciation schedule assuming Pool Corporation uses the double-declining-balance method. 4. Create a depreciation schedule assuming Pool Corporation uses the units-of-production method, with actual production of 8,100 hours in Year 1; 7,500 hours in Year 2; and 8,700 hours in Year 3. 5. On December 31 of Year 2 before the year-end adjustments, the equipment was sold for $23,000. Record the sale of the equipment assuming the company used the straight-line method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Record the purchase of the equipment, freight, preparation costs, and insurance on January 1 of Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Required 1 Required 2 Required 3 Required 4 Required 5 Record the purchase of the equipment, freight, preparation costs, and insurance on January 1 of Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Pool Corporation purchased for cash new loading equipment for the warehouse on January 1 of Year 1, at an invoice price of $73,500. It also paid $2,200 for freight on the equipment, $1,400 to prepare the equipment for use in the warehouse, and $850 for insurance to cover the equipment during operation in Year 1. The equipment was estimated to have a residual value of $3,400 and be used over three years or 24,500 hours. Required: 1. Record the purchase of the equipment, freight, preparation costs, and insurance on January 1 of Year 1. 2. Create a depreciation schedule assuming Pool Corporation uses the straight-line method. 3. Create a depreciation schedule assuming Pool Corporation uses the double-declining-balance method. 4. Create a depreciation schedule assuming Pool Corporation uses the units-of-production method, with actual production of 8,100 hours in Year 1; 7,500 hours in Year 2; and 8,700 hours in Year 3. 5. On December 31 of Year 2 before the year-end adjustments, the equipment was sold for $23,000. Record the sale of the equipment assuming the company used the straight-line method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Create a depreciation schedule assuming Pool Corporation uses the units-of-production method, with actual production of 8,100 hours in Year 1; 7,500 hours in Year 2; and 8,700 hours in Year 3. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Year Depreciation Expense Accumulated Depreciation Net Book Value Required 3 Required 5 > Required 1 Required 2 Required 3 Required 4 Required 5 On December 31 of Year 2, the equipment was sold for $23,000. Record the 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. Do not round intermediate calculations. Round your final answer to nearest whole dollar.) View transaction list Journal entry worksheet 12 Record the depreciation expense, assuming the company uses the straight-line method. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
