fill the charts i WileyPLUs Ot/jedugen com/edu mainlun ?WebSice Gallery ? Gobier
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fill the charts
i WileyPLUs Ot/jedugen com/edu mainlun ?WebSice Gallery ? Gobierno usagov USAgew CenterPoint EnergyCharles Schwab Credit Finst National Dividetes 1 Dvingest AAngekn. College-O ?eBay ? PlayFree Gome, suggested Sites ? Basetatutonais Me Caeers and Career l. PRINCIPLES OF ACCOUNTING (FIN) (ACCT2301 WileyPLUS weygandt, Financial Accounting, 10e STANDARD VEW Exercise 9-7 and 10,800 in 2020 Calkulate depreciation expense per miñe under units of activity method. (Round answer to 2 decimal places, e.a. 0.s0) over its estimated useful life of 8 years. Actual mles driven were 16,400 in 201 Pina Colada Core. purchased a delivery truck for $32,000 on lamuary 1, 2019, The truck has an expected slvage value of S2,000, and is expected to be driven 100.000 mils Chap 9 Depreciation expenses per mle decimtal plac Compute depreciation expense for 2019 and 2020 vsing (I) the straight-line wathod, (2) the units-of-activity methed, and (3) the double declining-balance method. to 0 decimal piaces, e.g. 15, Round final answers to 0 decimal placeS,.g. 2, 125) (Round depreciation cost per uit ro 2 decioial places, eg.0.50 and depreciation rafe Depredation Expense (1) Straight-Tes method (2) Units-of-actrvity mathod 3) Gouble dedining-balatce method Assume that Pira Colada uses the straighn ine method. Prupars the lournal entry to record 201g depreciation. (Credit account titles are Entry for the indented when sutomaticaWy indeoted when amount is enteredt Do mot indant mansally It no entry is reguired, seluct "Me o for the amounts Roeund ansiwers to 0 decimel plam e.g. 2.125.) Account Tnles and txplanation show how the truck wodd be repaited in the December 31, 2019, tolance sheet. [Rocsnd aiswers to o decimaf places, .g. 22s wodd be r Assume that Pina Coluda uses the straight lone method. ?Explanation / Answer
Ans
a.) Under Units of activity method, depreciation of asset is calculated based on usage of such asset in that accounting period.
Depreciation expense per mile = (Purchase price of asset- Salvage value)/ Total usage of Truck i.e. Total miles to be driven
Depreciation expense per mile = (32,000-2000)/100,000 = 0.3
b.)
Working
Under Straight line method, depriciation will be = (Book Value - Salvage Value)/ Life of asset =(32000-2000)/8 = 3,750
Under Double declining balance method, depreciation will be = (Book Value/life of asset )*2
For 2019 = (32000/8)*2 = 8,000
For 2020 = (24000/8)*2 = 6,000
Under Unit of Activity Method Depriciation will be = Depreciation Expense per Mile * Miles driven in the accounting year
For 2019 = 0.3* 16,400 = $4,920
For 2020 = 0.3* 10,800 = $3,240
Particulars
Depreciation Expense
2019
2020
1.) Straight Line Method
3750
3750
2.) Unit of Activity Method
4920
3240
3.) Double Declining Method
8000
6000
c.) Journal Entry to record Depriciation Expense will be as follows:
Accounts Tiles and Explanation
Debit
Credit
Depreciation Expense
3750
Accumulated Depreciation
3750
d.) Delivery Truck in balance sheet of company will be reported under non current assets in the following manner:
Delivery Truck
32000
Less: Accumulated Depreciation
3750
$
28250
Particulars
Depreciation Expense
2019
2020
1.) Straight Line Method
3750
3750
2.) Unit of Activity Method
4920
3240
3.) Double Declining Method
8000
6000
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