Using the information below, determine the depreciation of the machinery using Straight Line Depreciation, Units of Production, and Double Declining Balance. Then complete the journal entry for the 1st year of use for each method. Depreciation will be recorded for the year on December 31. Use the Excel template provided in Blackboard.
		Equipment Purchase Price	$75,000
		Useful Life	5 years or 95,000 units	25,000 units in Year 1
		Salvage Value	$8,500
	Straight Line Depreciation:
	Cost- Salvage Value	Years	Depreciation per Year
	$8,500	5	$2,833.00
	Is says cost - salvage value, not salvage value.
	Units of Production:
	Cost- Salvage Value	Units	Depreciation per Unit
	$66,400	95,000	13280	What is the depreciation per unit?
	Units in Year 1 =	25,000
	Depreciation per Year =	$2,833.00
	Double Declining Balance:
	Rate of Depreciation =	10%	I think the PowerPoint for week 4 will help you with this.
	Book value	Percent	Depreciation per Year
General Journal
Date	Account	PR	Dr	Cr
Week 5
31-Dec	Depreciation Expense		13,300.00
31-Dec	Accumulated Depreciation indent			13,300.00
31-Dec	Depreciation Expense		17,500.00
31-Dec	Accumulated Depreciation Indent			17,500.00
31-Dec	Depreciation Expense		30,000.00
31-Dec	Accumulated Depreciation indent			30,000.00
	how to record

Answer rating: 100% (QA)

Solution To record the depreciation expense for the first year using the three methods we will need ... View the full answer