13 t nces Required Information Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-31 [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $130,000. It is expected to have a five-year life and a $20,000 salvage value. Exercise 8-9A (Algo) Part a Required a. Compute the depreciation for each of the five years, assuming that the company uses: (1) Straight-line depreciation. (2) Double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Compute the depreciation for each of the five years, assuming that the company uses straight-line depreciation. Straight-line depreciation for each year HAL Req A2 > . n.... in in Mait Required a. Compute the depreciation for each of the five years, assuming that the company uses: 3 (1) Straight-line depreciation. (2) Double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Req A2 t ces Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Year 1 Year 2 Year 31 Year 4 Year 5 Double- Declining Balance depreciation LU 0-2, 0-3 [The following Information applies to the questions displayed below] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $130,000. It is expected to have a five-year life and a $20,000 salvage value. Exercise 8-9A (Algo) Part b b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double- declining-balance methods in a horizontal statements model. (In the Statement of Cash Flows column, use the Initials OA to designate operating activity, IA for Investing activity, and FA for financing activity. Leave blank to Indicate that an element is affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) COPELAND DRUGSTORE Horizontal Statements Model 4. Balance Sheet Income Statement Assets Stockholders Statement of Cash Cash Book Value of Computer Equity Retained Earnings Revenue Expenses Net Income Flows Straight-line depreciation Double-declining-balance depreciation H Required information Req C1 Req C2 3 Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses straight-line depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 < ces Record depreciation expense. Note: Enter debits before credits. Date YE 1 General Journal Debit Credit Record entry Clear entry View general journal 9 Required information Req C1 Req C2 3 of 3 Hint Print rences Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses double-declini balance depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field View transaction list Journal entry worksheet 1 2 3 4 5 Record depreciation expense for year 1. Note: Enter debits before credits. Datel Yr. 1 General Journal Debit Credit < Prev 9 19 82 of 20 Next >