Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(The following information applies to the questions displayed below.) Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at

image text in transcribedimage text in transcribedimage text in transcribed

(The following information applies to the questions displayed below.) Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $16,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,450 hours; year 2, 2,350 hours; year 3, 2,100 hours; year 4, 2,100 hours, and year 5, 1,000 hours. 2. Assume NGS sold the hydrotherapy tub system for $4,950 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the disposal of the hydrotherapy tub system for $4,950 in year 3 assuming depreciation was calculated using the straight-line method. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the disposal of the hydrotherapy tub system for $4,950 in year 3 assuming depreciation was calculated using the units-of-production method. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 Record entry Clear entry View general journal Journal entry worksheet Record the disposal of hydrotherapy tub system for $4,950 in year 3 assuming depreciation was calculated using the double-declining method. Note: Enter debits before credits. General Journal Debit Credit Transaction 3 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To AccountingAn Integrated Approach

Authors: Penne Ainsworth, Dan Deines

8th Edition

1119600103, 9781119600107

More Books

Students also viewed these Accounting questions