ESTIMATES Prepare the entry to record depreciation expense at the end of year 1.

Question

ESTIMATES

Prepare the entry to record depreciation expense at the end of year 1. assuming the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare the entry to record depreciation expense at the end of year 1. assuming the following. (lf no entry is required for a transaction event, select"No journal entry required" in the first account field.) ESTIMATES Residual Depreciation Method Machine Value Life 9 years $1,700 76,000 hours 2,200 2,600 Straight-line Units-of-production Double-declining-balance 9 years view transaction list view general journal Journal Entry Worksheet Record the depreciation expense for year 1 Transaction General Journal Debit Credit Enter debits before credits done clear entry record entry

Explanation / Answer

Solution:

(A). Stright Line Depreciation:

    = 0 - 1,700 / 9

   = 188.88

(B). Units of Production Method:

Depreciation =

Number of Units Produced

× (Cost Salvage Value)

Life in Number of Units

= 2,200 / 76,000 * 1,700

   =49.21

(C). Double Decling Balance Method:

Value is Nothing Beacuse Asset Value is Compulsory.

  Depreciation = Asset Value - Residual Value / No. of Years

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