1. Create a units-of-production depreciation table and annual journal entries

Equipment Cost 10,000 1,000 Salvage Life in Units 36,000 Year per Unit 7,000 Units-of-Production Method of Depreciation Units Depreciation Depreciation Accumulated Produced Expense Depreciation Book Value 1 2 8,000 3 9,000 4 7,000 5 5,000 36,000 Total Credit General Journal Accounts Debit Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation