6. Newson Electric prepares monthly financial statements. Fixed assets owned by the company include equipment valued...

  

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6. Newson Electric prepares monthly financial statements. Fixed assets owned by the company include equipment valued at $14 000 and a service van worth $30 000. Accumulated depreciation on the equipment is $7170. Accumulated depreciation on the truck is S6500. Prepare adjusting entries to recond one month's depreciation, using the declining-balance method. The rate of depreciation for one year for the equipment is 20 percent, and for the truck is 30 percent. (Hint: You may need to round any calculations to two decimal places.) 4. It has been estimated that equipment bought for $24 000 will have a use ful life of six years, at which time it will be thrown away with no remain ing salvage value. (a) Using the straight-line method of depreciation, what will be the amount of depreciation each yeart (b) Complete the working papens copy of this chant for a period of six years (c) How would the equipment appear in the fixed asset section of the balance sheet at the end of year five! Vear six? Book Value at Beginning of Vear Depreciation Expense for the Year Accumulated look Value at Vear Depreciation End of Year $24 000 $4 000 54 000 S20 000 6. Newson Electric prepares monthly financial statements. Fixed assets owned by the company include equipment valued at $14 000 and a service van worth $30 000. Accumulated depreciation on the equipment is $7170. Accumulated depreciation on the truck is S6500. Prepare adjusting entries to recond one month's depreciation, using the declining-balance method. The rate of depreciation for one year for the equipment is 20 percent, and for the truck is 30 percent. (Hint: You may need to round any calculations to two decimal places.) 4. It has been estimated that equipment bought for $24 000 will have a use ful life of six years, at which time it will be thrown away with no remain ing salvage value. (a) Using the straight-line method of depreciation, what will be the amount of depreciation each yeart (b) Complete the working papens copy of this chant for a period of six years (c) How would the equipment appear in the fixed asset section of the balance sheet at the end of year five! Vear six? Book Value at Beginning of Vear Depreciation Expense for the Year Accumulated look Value at Vear Depreciation End of Year $24 000 $4 000 54 000 S20 000