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These numbers are correct ^^^ I can't get the gain/loss number right ^^^ Required information (The following information applies to the questions displayed below.] Nicole's
These numbers are correct ^^^
I can't get the gain/loss number right ^^^
Required information (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 $5,500. 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, 2,300 hours; year 2, 2,400 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000 hours. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete a depreciation schedule for straight-line method. to the nearest dollar amount.) Year Depreciation Accumulated Expense Depreciation Book Value $ At Acquisition Year 1 $ Year 2 $ Year 3 5,500 4,500 3,500 2,500 1,500 500 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ Year 4 $ Year 5 $ Complete a depreciation schedule for units-of-production meth answers to the nearest dollar amount.) Year Depreciation Expense Accumulated Depreciation Book Value $ At Acquisition Year 1 $ Year 2 5,500 4,350 3,150 2,050 $ Year 3 1,150 $ 1,200 $ 1,100 $ 1,050 $ 500 $ $ 1,150 $ 2,350 $ 3,450 $ 4,500 $ 5,000 $ Year 4 $ 1,000 Year 5 $ 500 Complete a depreciation schedule for double-declining-balance method. final answers to the nearest dollar amount.) Year Depreciation Expense Accumulated Depreciation Book Value $ At Acquisition Year 1 $ Year 2 5,500 3,300 1,980 1,188 2,200 $ 1,320 $ 792 $ $ Year 3 2,200 $ 3,520 $ 4,312 $ 4,787 $ 5,000 $ $ Year 4 $ 475 $ 713 Year 5 $ 213 $ 500 [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 $5,500. 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, 2,300 hours; year 2, 2,400 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000 hours. 2. Assume NGS sold the hydrotherapy tub system for $1,650 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.) No Transaction General Journal Debit Credit A 1 Cash 1,650 3,000 Accumulated Depreciation Loss on Disposal Equipment 850 5,500 B 2 Cash 1,650 3,450 Accumulated Depreciation Loss on Disposal Equipment 400 5,500 B 2 1,650 3,450 Cash Accumulated Depreciation Loss on Disposal Equipment 400 5,500 C 3 1,650 4,312 Cash Accumulated Depreciation Gain on Disposal Equipment 462 5,500 Required information [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 $5,500. 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, 2,300 hours; year 2, 2,400 hours; year 3, 2,200 hours; year 4, 2,100 hours; and year 5, 1,000 hours. 3. Assume NGS sold the hydrotherapy tub system for $1,650 at the end of year 3.The following amounts were forecast for year 3: Sales Revenues $45,000; Cost of Goods Sold $35,000; Other Operating Expenses $4,500; and Interest Expense $900. Create an income statement for year 3 for each of the different depreciation methods, ending at Income before Income Tax Expense. (Don't forget to include a loss or gain on disposal for each method.). (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) X Answer is not complete. NICOLE'S GETAWAY SPA (Forecasted) Income Statement For the Year Ended Year 3 Double- Straight Units-of- Line Production Declining Balance $ 45,000 $ 45,000 $ 45,000 35,000 35,000 35,000 10,000 10,000 10,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Other Operating Expenses Interest Expense 4,500 4,500 4,500 900 X 900 X 900 X 2.200 x 792 462 Depreciation Expense Loss (Gain) on Disposal Total Operating Expenses Income from Operations 1,000 (850) 5,550 4,450 X (400) 7,200 6,654 3,346 X 2,800 X Income before Income Tax Expense 4,450 2,800 3,346Step by Step Solution
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