China Dragon purchased new restaurant equipment on September 1, 2024, for $10,000. Residual value at the...

 

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China Dragon purchased new restaurant equipment on September 1, 2024, for $10,000. Residual value at the end of an estimated five- year service life is expected to be $1,800. Required: 1. Calculate depreciation expense using the straight-line method for 2024 and 2025, assuming a December 31 year-end. 2. Determine the financial statement effects of the depreciation in 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the financial statement effects of the depreciation in 2024. Note: Amounts to be deducted should be Indicated by a minus sign. 2024 Assets Balance Sheet Income Statement Liabilities Common Stock Stockholders' Equity Retained Earnings Revenues & Gains Expenses < Required 1 Required 2 > China Dragon purchased new restaurant equipment on September 1, 2024, for $10,000. Residual value at the end of an estimated five- year service life is expected to be $1,800. Required: 1. Calculate depreciation expense using the straight-line method for 2024 and 2025, assuming a December 31 year-end. 2. Determine the financial statement effects of the depreciation in 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the financial statement effects of the depreciation in 2024. Note: Amounts to be deducted should be Indicated by a minus sign. 2024 Assets Balance Sheet Income Statement Liabilities Common Stock Stockholders' Equity Retained Earnings Revenues & Gains Expenses < Required 1 Required 2 >