Wildhorse Productions Corp. purchased equipment on March 1, 2021, for $56,800. 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 2021, the equipment produced 4,800 units. On November 30, 2022, the machine was sold for $18,000 and had produced 6,200 units that year. (a) Your answer has been saved. See score details after the due date. Record all the necessary journal entries for the years ended December 31, 2021 and 2022, using the following depreciation methods: (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round the depreciation rate in the double-diminishing-balance method to the nearest whole percent, e.g. 43% and round depreciation per unit in the units-of- production depreciation method to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight-line Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 56800 Cash 56800 Dec. 31 Depreciation Expense 13000 Accumulated Depreciation - Equipment 13000 2022 Nov. 30 Depreciation Expense 14300 Accumulated Depreciation - Equipment 14300 (To record depreciation expense) Nov. 30 Cash 18000 Accumulated Depreciation - Equipment 27300 Loss on Disposal 11500 Equipment 56800 (To record the sale of machine) (2) Double-diminishing-balance Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 56800 Cash 56800 Dec. 31 Depreciation Expense 31556 Accumulated Depreciation - Equipment 31556 (2) Double-diminishing-balance Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 56800 Cash 56800 Dec. 31 Depreciation Expense 31556 Accumulated Depreciation - Equipment 31556 2022 Nov. 30 Depreciation Expense 15244 Accumulated Depreciation - Equipment 15244 (To record depreciation expense) Nov. 30 Cash 18000 Accumulated Depreciation - Equipment 46800 Gain on Disposal 8000 Equipment 56800 (3) Units-of-Production Date Account Titles and Explanation Debit Credit 2021 Mar. 1 Equipment 56800 Cash 56800 Dec. 31 Depreciation Expense 18720 Accumulated Depreciation - Equipment 18720 2022 Nov. 30 Depreciation Expense 24180 Accumulated Depreciation - Equi (To record depreciation expense) Nov. 30 Cash 18000 Accumulated Depreciation - Equipment 42900 Gain on Disposal 4100 Equipment 56800 (To record the sale of machine) (b) Complete the following schedule for each method of depreciation and compare the total expense over the two-year period. (Round answers to O decimal places, e.g. 5,275.) Straight- Line Double-Diminishing- Balance Units-of- Production Depreciation expense 2021 $ $ $ 2022 Total depreciation expense for two years +Loss (or - gain) on disposal = Net expense for two years $ $ $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit
