The Phyllis Paper is a tabloid magazine. On January $1,$ Phyllis purchased a used printing

press for $$550,000.$ Based on past experience and reliability information about printing

presses, Phyllis expects the printing press to last five years and print approximately

$150,000$ copies. At the end of its useful life to the company, Phyllis estimates a resale

value of approximately $$200,000$ for the press.

Calculate depreciation using the straight$-$line method.

Determine the annual depreciation expense for the printing press using the straight$-$

line method. Prepare a schedule that illustrates annual depreciation expense.

Prepare the journal entry to record the first year of depreciation expense. $($See slide

$13$ in lecture $10\mathrm{.}0$ for an example schedule.$)$

Calculate depreciation using the units$-$of$-$production method.

Determine the annual depreciation expense for the printing press using the units$-$of$-$

production method. Prepare a schedule that illustrates annual depreciation expense

assuming the following usage: $35,000$ copies in year one; $25,000$ copies in year two;

$40,000$ copies in year three; $20,000$ copies in year four; and $22,000$ copies in year

five. Prepare the journal entry to record the first year of depreciation expense. $($See

slide $16$ in lecture $10\mathrm{.}0$ for an example schedule.$)$

Calculate depreciation using the double$-$declining$-$balance method.

Determine the annual depreciation expense for the printing press using the double$-$

declining$-$balance method. Prepare a schedule that illustrates annual depreciSheridan Sights Corporation sells scenic sightseeing trips over the Bighorn Mountains.

Over the last several years, the company has become interested in purchasing a used

airplane. Instead of issuing common stock, the company decides to issue bonds. The

company issued $$1,000,000$ of $9\%$ three$-$year bonds at $96$ on January $1,2022.$ Interest

is paid semiannually on January $1$ and July $1.$ Sheridan Sights Corporation uses the

straight$-$line method of amortization.

The corporation would like to better understand the bond issue. Using the table below

as a guide, calculate the interest expense, amortization of any discount, and the carrying

value of the bond at the end of each year for the life of the bond.

Date Interest paid

Amortization of

discount

Discount

Carrying value of

bond

Jan. $1,2018$

Jul. $1,2018$

Dec. $31,$

$2018$

Jul. $1,2019$