Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tevo Productions Corp. purchased equipment on March 1, 2018, for $70,000. The company estimated the equipment would have a useful life of three years and
Tevo Productions Corp. purchased equipment on March 1, 2018, for $70,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $10,000. During 2018, the equipment produced 4,900 units. On November 30, 2019, the machine was sold for $18,000 and had produced 5,600 units that year. Question 26 (4 points) a) Assume Tevo Productions Corp. uses the double-diminishing (declining) method of depreciation. Calculate the depreciation expense for the following years. Show all calculations! December 31, 2018 November 30, 2019 b) Assume Tevo Productions Corp. uses the units-of-production method of depreciation. Calculate the depreciation expense for the following years. Show all calculations! December 31, 2018 November 30, 2019 c) Assume Tevo Productions Corp. uses the straight-line depreciation method. Calculate the depreciation expense for the following years. Show all calculations! December 31, 2018 November 30, 2019 d) Provide the entry Tevo Productions Corp. would make at December 31, 2018, if they used the units-of-production method of depreciation which you calculated in (b), above. e) What type of adjusting entry did the company make in (d), above? O Prepaid Expense Accrued Revenue Accrued Expense The entry was a transactional entry. Unearned Revenue Question 31 (6 points) f) Tevo Productions Corp. used the double-diminishing (declining) method for the machine sold on November 30, 2019. Provide all the entries required on November 30, 2019. Show all calculations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started