On January 1, 2019, Splis h Brothers Company purchased the following two machine

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On January 1, 2019, Splis h Brothers Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $46,500. Related expenditures included: sales tax $3,700, shipping costs $100, insurance during shipping $50, installationa ubricants to be used with the machinery during its first year of operations. Splish Brothers estimates that 0 salvag e value remaining at the end of that time the useful life of the machine is 5 years with a period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Splish machine is 4 years with a $10,150 salvage value remaining at the end of that time period. $,3 Brothers estimates that the useful life of the Machine B: Prepare the following for Machine A. (Round answers to O decimal places, e.g. 2,125. Credit account titles are 0 automatically indented when amount is entered. Do not indent manually. If no entry is required, select Entry" for the account titles and enter 0 for the amounts.) 1. The journal entry to record its purchase on January 1, 2019. 2. The journal entry to record annual depreciation at December 31, 2019. No. Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Calculate the amount of depreciation expense that Splish Brothers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) Splish Brothers uses the straight-line method of depreciation. (1) (2

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working Total cost of Machine A Cash price $46,500 Sales tax 3700 Shipping cost 100 Insurance 50 Installation and testing 70 Total cost of Machine A $50,420 ans 1 No Accounts Titles Dr Cr 1 Equipment $50,420 Cash $50,420 2 Depreciation expenses 9224 Accumulated Depreciation-Equipment 9224 (50420-4300)/5 ans b SLM depreciation per year (180000-10150)/4 42463 DDB method DDB rate 1/4*200% 50 Year Beg Book value DDB Dep exp Acc dep ending book value 1 180000 50% 90000 90000 90000 2 90000 50% 45000 135000 45000 3 45000 50% 22500 157500 22500 4 22500 50% 12350 169850 10150 For year 4 dep is 180000-10150-157500 12350 Unit of activity method Cost per unit 1.54 (180000-10150)/110150 Year Unit produced Dep cost per unit Dep exp 1 43500 1.54 66990 2 32000 1.54 49280 3 20500 1.54 31570 4 14150 1.54 21791 2018 2019 2020 2021 SLM 42463 42463 42463 42463 DDB 90000 45000 22500 12350 Unit of activity 66990 49280 31570 21791 or 22010 as rounded off differnce ans Year 1 Highest amt Double declining method Highest in Year 4 Straight line method Highest total amt All of the above

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