A B C D E F G H J K L M 56 7 8 9 Presented below are certain Tangible Assets for the Cheryll's Furniture Company's Accounting Records for the year of 2022 CHERYLL'S FURNITURE COMPANY 10 Asset Acquisition For the Year Ended December 31, 2022 The following Assets were acquired on January 1, 2022 by Cheryll's Furniture Company during the current year: 11 12 13 14 15 ASSET Estimated Useful Estimated Salvage Life * TOTAL COST Value 16 Computer System 5 Years $115,000 $12,500 17 Manufacturing Equipment 6 Years 300,000 30,000 18 Delivery Truck 4 Years 55,000 7,500 19 Total $470,000 20 21 * Estimated Useful Life In Activity as follows: 22 Computer System 100,000 Hours 23 Manufacturing Equipment 20,000 Hours 24 Delivery Truck 200,000 Miles 25 26 REQUIRED 27 1. Calculate Depreciation Expense for the first three (3) years for each Asset Using the following Depreciation Methods: (a) STRAIGHT-LINE METHOD (c) ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD ACTIVITY 28 29 (b) DOUBLE DECLINING-BALANCE METHOD 30 31 ASSET 32 Computer System B3 Manufacturing Equipment 34 Delivery Truck 35 Year 1 12,000 Hours; Year 2 - 16,000 Hours; Year 3 - 20,000 Hours Year 1 2,400 Hours; Year 2 - 3,200 Hours; Year 3 - 4,800 Hours Year 1 68,400 Miles; Year 2 - 83,200 Miles; Year 3 - 48,400 Miles 36 2. Make the Year-End Journal Entry (Adjusting Entry) for YEAR 1 ONLY for each of the three (3) Depreciation Methods 37 (One (1) Single Journal Entry Only For Each Depreciation Method) 38 39 12 3 4 5 6 7 A 8 STRAIGHT-LINE METHOD 9 YEAR 1 10 YEAR 2 11 YEAR 3 B C D ACCOUNTING 2301 (FINANCIAL ACCOUNTING) DEPRECIATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2022 12 13 14 DOUBLE DECLINING-BALANCE METHOD 15 YEAR 1 16 YEAR 2 17 YEAR 3 18 19 20 ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD 21 YEAR 1 22 YEAR 2 23 YEAR 3 24 25 26 27 28 E FL G H | J Manufaturing Computer System Equipment Delivery Truck 123 A E C CEFGHIJKLMN CPQRSTUVWXY Z AA CHERYLL'S FURNITURE COMPANY GENERAL JOURNAL For The Year Ended December 31, 2022 4 Date Accounts/Description 56789 STRAIGHT-LINE DEPRECIATION December 31, 2022 Depreciation Expense Accumulated Depreciation 10 Debits Credits 11 12 DOUBLE DECLINING-BALANCE DEPRECIATION 13 14 December 31, 2022 Depreciation Expense 15 Accumulated Depreciation 16 17 18 19 ACTIVITY-BASED (UNITS OF PRODUCTION) DEPRECIATION 20 21 December 31, 2022 Depreciation Expense 22 Accumulated Depreciation 23 24 25 26 27 28 29 30 31 32