Smith Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Smith Corporation purchased for cash new loading equipment for the warehouse on January 1, 2014, at an invoice price of $80,000. It also paid $1,500 for freight on the equipment, $1,000 to prepare the equipment for use in the warehouse, and $750 for insurance to cover the equipment during operation in 2014. The equipment was estimated to have a residual value of $3,300 and be used over three years or 24,000 hours.

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Asset Acquisition, Depreciation, and Disposal Excel Case Problem Smith Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Smith Corporation purchased for cash new loading equipment for the warehouse on January 1, 2014, at an invoice price of $80,000. It also paid $1,500 for freight on the equipment, $1,000 to prepare the equipment for use in the warehouse, and $750 for insurance to cover the equipment during operation in 2014. The equipment was estimated to have a residual value of $3,300 and be used over three years or 24,000 hours. Required: Submit your answers below in an Excel Spreadsheet. Please create a new tab for each numbered solution below. Record the purchase of the equipment, freight, preparation costs, and insurance on January 1, 2014. Create a depreciation schedule assuming Smith Corporation uses the straight-line method. Create a depreciation schedule assuming Smith Corporation uses the double-declining-balance method. Round answers to the nearest dollar. On December 31, 2015, the equipment was sold for $22,500. Record the sale of the equipment assuming the company used the straight-line method.

2. Recording and Reporting Liabilities Excel Case Problem

Smith Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. It sells these products to swimming pool repair and service businesses, swimming pool builders, and retail swimming pool stores. The majority of these customers are small, family-owned businesses. Smith Corporation completed the following transactions during 2014.The annual accounting period ends December 31, 2014.

Sept 15	Purchased and paid for merchandise for resale at an invoice cost of $100,000
Oct. 1	Borrowed $800,000 from Southwest Bank for general use; signed an 11-month, 5 % interest-bearing note payable.
Oct . 5	Received a $35,000 customer deposit from Joe Jones for services to be performed in the future
Oct 15	Performed $18,000 of the services paid for by Mr. Jones
Dec 12	Received electric bill for $12,000. Smith will pay it in early January.
Dec 31	Determined wages of $50,000 earned but not yet paid on December 31st (disregard payroll taxes)

Required: Submit your answers below in an Excel spreadsheet

Prepare journal entries for each of these transactions.

Prepare any adjusting entries required on December 31, 2014.