STUDENT NAME ACCOUNTING 2113 (FINANCIAL ACCOUNTING) DEPRECIATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2019 Asset Acquisition The following Assets were acquired on January 1, 2019 by Cheryll's Furniture Company during the current year: Estimated Useful Life TOTAL COST ASSET Computer System Manufacturing Equipment Delivery Truck Total Estimated Salvage Value $12,500 25,000 4,500 5 Years 8 Years 3 Years $95,000 500,000 45,000 $640,000 * Estimated Useful Life In Activity as follows: Computer System 100,000 Hours Manufacturing Equipment 20,000 Hours Delivery Truck 202,500 Miles REQUIRED 1. Calculate Depreciation Expense for the first three (3) years for each Asset Using the following Depreciation Methods: (a) STRAIGHT-LINE METHOD (b) DOUBLE DECLINING-BALANCE METHOD (c) ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD ASSET Computer System Year 1 - 12,000 Hours; Year 2 - 16,000 Hours; Year 3 -20,000 Hours Manufacturing Equipment Year 1-2,400 Hours; Year 2-3,200 Hours; Year 3 - 4,800 Hours Delivery Truck Year 1 - 68,400 Miles; Year 2 -83,200 Miles; Year 3 - 48,800 Miles ACTIVITY 2. Make the Year-End Joun... Entry (Adjusting Entry) for Year 1 only for each of the three (3) Depreciation Methods (One (1) Single Journal Entry Only For Each Depreciation Method) ACCOUNTING 2113 (FINANCIAL ACCOUNTING) DEPRECIATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2019 Computer System Manufaturing Equipment Delivery Truck STRAIGHT-LINE METHOD YEAR 1 YEAR 2 YEAR 3 DOUBLE DECLINING-BALANCE METHOD YEAR 1 YEAR 2 YEAR 3 ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD YEAR 1 YEAR 2 YEAR 3 CHERYLL'S FURNITURE COMPANY GENERAL JOURNAL For The Year Ended December 31, 2019 Date Debits Credits Accounts/Description STRAIGHT-LINE DEPRECIATION 31-Dec-19 | Depreciation Expense Accumulated Depreciation DOUBLE DECLINING-BALANCE DEPRECIATION 31-Dec-19 || Depreciation Expense Accumulated Depreciation ACTIVITY-BASED (UNITS OF PRODUCTION) DEPRECIATION 31-Dec-19 || Depreciation Expense Accumulated Depreciation