Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The c

Question

Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $7,400. During 2015, the equipment produced 4,900 units. On November 30, 2016, the machine was sold for $19,000 and had produced 5,700 units that year.

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight-line, single-diminishing-balance, nnits-of-Production

Explanation / Answer

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight line :

Single diminishing balance

Unit of production

Date accounts & explanation debit credit 2015 Depreciation expense (69000-7400/3)*10/12 17111 Accumlated depreciation 17111 2016 Depreciation expense (69000-7400/3)*11/12 18822   Accumlated depreciation 18822

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