Recording and Preparing Schedule Using Sum of theYears Digits Method Depreciation, Partial Year An asset was purchased October 1, 2020, costing $30,000, with a residual value of $6,000 and an estimated three year useful life Required a Prepare a schedule of depreciation that shows annual depreciation expense and year end accumulated depreciation and book value over the useful life of the asset assuming that the company depreciated the asset using the sum of the years digits method Note Round each amount to the nearest dollar For the Period End of Period Reporting Period Depreciation Expense Accumulated Depreciation Book Value 2020 Answer Answer Answer 2021 Answer Answer Answer 2022 Answer Answer Answer 2023 Answer Answer Answer b Record the entry to recognize depreciation in 2020 Date Account Name Dr Cr Dec 31, 2020 AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN A Answer Answer AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN A Answer Answer c Record the entry to recognize depreciation in 2021 Date Account Name Dr Cr Dec 31, 2021 AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN A Answer Answer AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN A Answer Answer

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Recording and Preparing Schedule Using Sum-of-theYears-Digits Method Depreciation, Partial Year An asset was purchased October 1, 2020, costing $30,000, with a residual value of $6,000

Recording and Preparing Schedule Using Sum-of-theYears-Digits Method Depreciation, Partial Year

An asset was purchased October 1, 2020, costing $30,000, with a residual value of $6,000 and an estimated three-year useful life.

Required

a. Prepare a schedule of depreciation that shows annual depreciation expense and year-end accumulated depreciation and book value over the useful life of the asset assuming that the company depreciated the asset using the sum-of-the-years-digits method.

Note: Round each amount to the nearest dollar.

	For the Period	End of Period
Reporting Period	Depreciation Expense	Accumulated Depreciation	Book Value
2020	Answer	Answer	Answer
2021	Answer	Answer	Answer
2022	Answer	Answer	Answer
2023	Answer	Answer	Answer

b. Record the entry to recognize depreciation in 2020.

Date	Account Name	Dr.	Cr.
Dec. 31, 2020	AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A	Answer	Answer
	AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A	Answer	Answer

c. Record the entry to recognize depreciation in 2021.

Date	Account Name	Dr.	Cr.
Dec. 31, 2021	AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A	Answer	Answer
	AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A	Answer	Answer