At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $210,000. It...
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At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $210,000. It is expected to have a five-year life and a $30,000 salvage value. Exercise 8-9A (Algo) Part a Required: 6-1. Compute the depreciation, assuming that the company uses straight line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining balance depreciation. Complete this question by entering your answers in the tabs below. Reg A1 Compute the depreciation, assuming that the company uses straight line depreciation. Stront Line deprecation Reg A2 At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $210,000. It is expected to have a five-year life and a $30,000 salvage value. Exercise 8-9A (Algo) Part a Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Reg A2 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Note: Leave no cells blank be certain to enter "0" wherever required. Depreciation Expense Req A1 Year 11 Year 2 Year 3 Year 4 Year 5 M k 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 financial statements model. Note: In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Cash Balance Sheet Assets + Book Value of Computer Straight-Line Depreciation Double-Declining-Balance Depreciation COPELAND DRUGSTORE Horizontal Statements Model Stockholders Equity Retained Earnings Revenue Income Statement Expenses Net Income Statement of Cash Flows At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $210,000. It is expected to have a five-year life and a $30,000 salvage value. Exercise 8-9A (Algo) Part a Required: 6-1. Compute the depreciation, assuming that the company uses straight line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining balance depreciation. Complete this question by entering your answers in the tabs below. Reg A1 Compute the depreciation, assuming that the company uses straight line depreciation. Stront Line deprecation Reg A2 At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $210,000. It is expected to have a five-year life and a $30,000 salvage value. Exercise 8-9A (Algo) Part a Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Reg A2 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Note: Leave no cells blank be certain to enter "0" wherever required. Depreciation Expense Req A1 Year 11 Year 2 Year 3 Year 4 Year 5 M k 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 financial statements model. Note: In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Cash Balance Sheet Assets + Book Value of Computer Straight-Line Depreciation Double-Declining-Balance Depreciation COPELAND DRUGSTORE Horizontal Statements Model Stockholders Equity Retained Earnings Revenue Income Statement Expenses Net Income Statement of Cash Flows
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Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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