1. A gamer computer costs $ 3,850 with a residual of 800 and an estimated 5-year lifespan....
Question:
1. A gamer computer costs $ 3,850 with a residual of 800 and an estimated 5-year lifespan. Calculate annual depreciation using the straight-line depreciation method. Make wage entries.
2. A refrigerator in a cafeteria with a shelf life of 8 years costs $ 5,250 and has no residual. Calculate depreciation using the straight-line depreciation method and the declining balance method. Make the wage entries for each depreciation method.
3. A sewing machine in a textile factory was purchased for $ 223,000, has an estimated residual of $ 22,000, and useful life of 38,000 hours. It was used in the year for 4,200 hours. Calculates depreciation for the year using the unit-produced depreciation method, depreciable cost, and depreciation rate.
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby