Prepare a depreciation schedule for three delivery vehicles.

A used delivery van (#1 van) with an original purchase price of $20,000. The residual value is $5,000, and the useful life is 3 years. Use straight-line depreciation.

A new delivery van (#2 van) has an original purchase price of $45,000. The residual value is $3,500, and the useful life is 5 years. Use double declining depreciation.

A third vehicle with special equipment installed to meet a client's needs was purchased for $60,000. It is estimated to be driven 100,000 miles and has a residual value of $15,000. Use units of production depreciation method. 40,000 miles are driven the first year, 30,000 miles the second year, 20,000 miles the third year, and 15,000 miles the fourth year.

Record the following liability transactions. Use Excel formulas in the cells to show your calculations.

Date	Transaction
Year 1
January 5	Purchased equipment for $100,000, signing a 9-month, 7% note payable.
January 26	Recorded the week's sales of $80,000, 70% on account and 30% cash. All sales are subject to a 6% sales tax.
February 7	Remitted last week's sales tax to the appropriate government agency.
May 1	Borrowed $150,000 on a 5-year, 8% note payable calling for annual interest payments beginning next May 1.
October 1	Issued $100,000 5-year, 10%, semiannual bonds payable. The bonds were issued at 105.
October 5	Paid off the January 5 note payable.
November 30	Purchased inventory at a cost of $7,200, signing a 3-month, 6% note payable for that amount.
December 31	Accrued warranty expense is estimated at 3% of total sales of $900,000 (assume the sales were already recorded).
December 31	Record accrued interest on all outstanding notes and bonds payable (make a separate journal entry for each).
Year 2
February 28	Paid off the November 6% inventory note plus interest at maturity.
April 1	Paid the interest due on the semi-annual bonds.
May 1	Paid the interest for one year on the long-term note payable.