Journal Entry: 1.Record the disposal of the hydrotherapy tub system for $6,750 i
ID: 2582374 • Letter: J
Question
Journal Entry: 1.Record the disposal of the hydrotherapy tub system for $6,750 in year 3 assuming depreciation was calculated using the straight line method.
2.Record the disposal of the hydrotherapy tub system for $6,750 in year 3 assuming depreciation was calculated using the units-of-production method.
3.Record the disposal of hydrotherapy tub system for $6,750 in year 3 assuming depreciation was calculated using the double-declining method.
Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) a. Straight-line Depreciation Accumulated Depreciation Year At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 Book Value Expense b. Units-of-production Depreciation Expense Accumulated Book Value Depreciation Year At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 c. Double-declining-balance Depreciation Accumulated Depreciation Book Value Year At Acquisition Year 1 Year 2 Year 3 Year 4 Year 5 ExpenseExplanation / Answer
Straight line method
year
depreciation expense
Accumulated depreciation
book value
0
22500
1
4400
4400
18100
2
4400
8800
13700
3
4400
13200
9300
4
4400
17600
4900
5
4400
22000
500
Units of production method
Years
units produced
1
2450
2.2
5390
2
2400
2.2
5280
3
2000
2.2
4400
4
2150
2.2
4730
5
1000
2.2
2200
total hours
10000
deprciation per unit of production
22000/10000
2.2
year
depreciation expense
Accumulated depreciation
book value
0
22500
1
5390
5390
17110
2
5280
10670
11830
3
4400
15070
7430
4
4730
19800
2700
5
2200
22000
500
double declining method of depreciation
straight line rate of depreciation
20000/5
0.2
double declining rate
straight line rate*2
40%
year
Book value
Double declining rate
annual depreciation
accumulated depreciation
year end book value
0
22500
1
22500
40%
9000
9000
13500
2
13500
40%
5400
14400
8100
3
8100
40%
3240
17640
4860
4
4860
40%
1944
19584
2916
5
2916
40%
1166.4
20750.4
1749.6
date
explanation
debit
credit
1-
cash
6750
accumulated depreciation
13200
loss on sale of equipment
2550
equipment
22500
(equipment sold)
2-
cash
6750
accumulated depreciation
10670
loss on sale of equipment
5080
equipment
22500
(equipment sold)
3-
cash
6750
accumulated depreciation
17640
equipment
22500
gain on sale of equipment
1890
(equipment sold)
Straight line method
year
depreciation expense
Accumulated depreciation
book value
0
22500
1
4400
4400
18100
2
4400
8800
13700
3
4400
13200
9300
4
4400
17600
4900
5
4400
22000
500
Units of production method
Years
units produced
1
2450
2.2
5390
2
2400
2.2
5280
3
2000
2.2
4400
4
2150
2.2
4730
5
1000
2.2
2200
total hours
10000
deprciation per unit of production
22000/10000
2.2
year
depreciation expense
Accumulated depreciation
book value
0
22500
1
5390
5390
17110
2
5280
10670
11830
3
4400
15070
7430
4
4730
19800
2700
5
2200
22000
500
double declining method of depreciation
straight line rate of depreciation
20000/5
0.2
double declining rate
straight line rate*2
40%
year
Book value
Double declining rate
annual depreciation
accumulated depreciation
year end book value
0
22500
1
22500
40%
9000
9000
13500
2
13500
40%
5400
14400
8100
3
8100
40%
3240
17640
4860
4
4860
40%
1944
19584
2916
5
2916
40%
1166.4
20750.4
1749.6
date
explanation
debit
credit
1-
cash
6750
accumulated depreciation
13200
loss on sale of equipment
2550
equipment
22500
(equipment sold)
2-
cash
6750
accumulated depreciation
10670
loss on sale of equipment
5080
equipment
22500
(equipment sold)
3-
cash
6750
accumulated depreciation
17640
equipment
22500
gain on sale of equipment
1890
(equipment sold)
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