At the beginning of the year, ABC Company purchased a new machine for $80,000. k is...
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At the beginning of the year, ABC Company purchased a new machine for $80,000. k is expected to have a five-year life and a $12,000 salvage value. Required: a. Compute the depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. Straight-line depreciation (2) Double-declining-balance depreciation. Double-Declining: Year 1 Year 2 Year 3 Year 4 Year 5 b. Prepare the journal entries to record the depreciation expense. If no entry is needed, put "No Entry" on the line. (11 Straight-line depreciation. Credit Date Yr. 1 General Journal Debit (2) Double-declining-balance depreciation. Date General Journal Debit Credit Yr. 1 Yr. 2 39 40 41 Yr. 3 42 43 44 45 Yr. 4 46 47 48 49 Yr. 5 50 51 52 At the beginning of the year, ABC Company purchased a new machine for $80,000. k is expected to have a five-year life and a $12,000 salvage value. Required: a. Compute the depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. Straight-line depreciation (2) Double-declining-balance depreciation. Double-Declining: Year 1 Year 2 Year 3 Year 4 Year 5 b. Prepare the journal entries to record the depreciation expense. If no entry is needed, put "No Entry" on the line. (11 Straight-line depreciation. Credit Date Yr. 1 General Journal Debit (2) Double-declining-balance depreciation. Date General Journal Debit Credit Yr. 1 Yr. 2 39 40 41 Yr. 3 42 43 44 45 Yr. 4 46 47 48 49 Yr. 5 50 51 52
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Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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