record a journal entry for depreciation expense for straight line, 200% declinin

Question

record a journal entry for depreciation expense for straight line, 200% declining balance and 150% declining balance?

On April 8, 2018, Dreamland Park purchased a ferris wheel for $300,000. The estimated life of the ferris wheel was 10 years, with an estimated residual value of $60,000. The service life in terms of output is estimated at 30,000 hours of operation. Compute the depreciation on this ferris wheel in 2018 and 2019 using the following methods. 2018 2019 a Strai 200%-declining-balance 1D.320 (da) b / 30.00?20 150%-declining-balance 0300./ ",5- ? Record the Journal Entry for the 2019 depreciation expense for all three above methods. 2018 General Journal

Explanation / Answer

First let us compute the depreciation amounts for 2019 (I am assuming that the half year convention is applicable )

Amount of straight line depreciation in 2019 = (300,000-60,000)/10 = $24,000

200% declining balance method: Depreciation rate = 2*(100/10) = 20%. Depreciation in 2018 = 300,000*20%*1/2 = 30,000. Depreciation in 2019 = (300000-30000)*20% = 54,000

150% declining balance method: Depreciation rate = 15%. Depreciation in 2018 = 300,000*15%*1/2 = 22500. 2019 depreciation = (300000-22500)*15% = $41,625

Journal entry for 2019 for the above methods:

Straight line method Debit Credit Depreciation account 24,000 Accumulated depreciation account 24,000 200% declining balance method Depreciation account 54,000 Accumulated depreciation account 54,000 150% declining balance method Depreciation account 41,625 Accumulated depreciation account 41,625

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