Problem 10-03A a'c (Part Level Submission) On January 1, 2020, Whispering Winds Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $56,500. Related expenditures included: sales tax $2,550, shipping costs $100, ir and lubricants to be used with the machinery during its first year of operations. Whispering Winds estimates that the the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Whispering Winds estimates that the useful life of the machine is 4 Machine B: Your answer is correct. Prepare the following for Machine A. (Round answers to decimal places, e.g. 5,125. Credit account titles are automaticall is required, select "No Entry" for the account titles and enter o for the amounts.) 1. The journal entry to record its purchase on January 1, 2020. 2. The journal entry to record annual depreciation at December 31, 2020 No. Account Titles and Explanation Debit Credit 1. Equipment 59290 59290 2. Depreciation Expense 1098 Accumulated Depreciation Equipment 10988 Click if you would like to Show Work for this questionOpen Show Work achines for use in its production process. s included: sales tax $2,550, shipping costs $100, insurance during shipping $50, installation and testing costs $90, and $200 of oil of operations. Whispering Winds estimates that the useful life of the machine is 5 years with a $4,350 salvage value remaining at of depreciation is used. mds estimates that the useful life of the machine is 4 years with a $10,100 salvage value remaining at the end of that time period. eg. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry e amounts.) Credit 10988 (b) Calculate the amount of depreciation expense that Whispering Winds should record for Machine B each year of its useful life under the fe places, e.g. 12.25. Round final answers to O decimal places, e.g. 2,125.) (1) Whispering Winds uses the straight-line method of depreciation. (2) Whispering Winds uses the declining-balance method. The rate used is twice the straight-line rate. (3) Whispering Winds uses the units of activity method and estimates that the useful life of the machine is 135,920 units. Actual usag units; 2023, 18,920 units. 2020 Depreciation Expense 2021 2022 2023 Straight-line method Declining-balance methods Units-of-activity method Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal 5.) twice the straight-line rate. it the useful life of the machine is 135,920 units. Actual usage is as follows: 2020, 52,000 units; 2021, 39,000 units; 2022, 26,000
