Question
Restaurant La Jolie Vache purchased equipment on January 1, 2018 for $70,000. The asset is expected to last for four years, at which time the
Restaurant La Jolie Vache purchased equipment on January 1, 2018 for $70,000. The asset is expected to last for four years, at which time the estimated residual value will be $11,000.
Required a) Prepare a table showing the amount of depreciation expense each year, accumulated depreciation to date, and net book value. Restaurant La Jolie Vache uses straight-line depreciation.
Do not enter dollar signs or commas in the input boxes. Round all dollar figure answers to the nearest whole number.
Year | Cost of Long-Term Asset | Depreciation Expense | Accumulated Depreciation to Date | Net Book Value |
2018 | $70,000 | $Answer
| $Answer
| $Answer
|
2019 | $70,000 | $Answer
| $Answer
| $Answer
|
2020 | $70,000 | $Answer
| $Answer
| $Answer
|
2021 | $70,000 | $Answer
| $Answer
| $Answer
|
b) The asset was sold for $12,000 on January 1, 2022. Prepare the journal entry to record the sale.
Enter all debit accounts in alphabetical order. Enter all credit accounts in alphabetical order.
Date | Account Title and Explanation | Debit | Credit |
Jan 1 |
| Answer
| |
| Answer
| ||
| Answer
| ||
| Answer
| ||
To record sale of equipment for cash |
c) Using the same purchase information at the beginning of the question, complete the table assuming that Restaurant La Jolie Vache used double-declining-balance depreciation.
Year | Net Book Value at the Beginning of the Year | Depreciation Expense | Accumulated Depreciation | Net Book Value at the End of the Year |
2018 | $Answer
| $Answer
| $Answer
| $Answer
|
2019 | $Answer
| $Answer
| $Answer
| $Answer
|
2020 | $Answer
| $Answer
| $Answer
| $Answer
|
2021 | $Answer
| $Answer
| $Answer
| $Answer
|
d) Using the same purchase information and residual value at the beginning of the question, assume that the company uses the units-of-production method. The asset can produce one million units. Prepare the depreciation table.
Year | Cost of Long-Term Asset | Units Produced | Depreciation Expense | Accumulated Depreciation | Net Book Value |
2018 | $70,000 | 170,000 | $Answer
| $Answer
| $Answer
|
2019 | $70,000 | 240,000 | $Answer
| $Answer
| $Answer
|
2020 | $70,000 | 150,000 | $Answer
| $Answer
| $Answer
|
2021 | $70,000 | 220,000 | $Answer
| $Answer
| $Answer
|
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