Excel Assignment 4 - Depreciation Practice Exerecise Jesse's Widgets purchased new equipment for a total amount of $575,000. The equipment is expected to last 10 years and have a residual/scrap/salvage value of $70,000 at the end of that life. Usage of the equipment is tracked in machine hours and the equipment in total is expected to last 75,000 hours, though they ended up exceeding that number in the final year. #of machine hours used each year (for units of production depreciation) Year 1 Hours 21,750 2 13,000 0 3 10,750 1 4. 0 No hours used this year, due to shop renovations. 2 5 11,250 3 6 8,250 16 456 7 7,750 5 8 Total 17 5,300 78,050 Requirements: Complete the depreciation schedule for Jesse's Widgets using each of the three depreciation methods (straight line, double-declining balance, 18 and units of production.) 19 20 A.) Straight Line Depreciation JOURNAL ENTRY Annual Depreciation Depreciation Expense/Accumulated 2222 21 22 Year 1 Beginning Book Value Percentage Rate Depreciation Ending Accumulated. Depreciation Balance Ending Book Value 24 2 3 25 4 26 5 27 6 28 7 29 8 30 9 31 10 32 33 B.) Double Declining Balance Depreciation JOURNAL ENTRY Depreciation Expense/Accumulated Ending Accumulated B.) Double Declining Balance Depreciation Year Beginning Book Value Depreciation Rate DS) 1 2 3 4 " " " 9 10 C.) Units of Production Depreciation JOURNAL ENTRY Depreciation Expense/Accumulated Depreciation Year Beginning Book Value Depreciation Rate Per Unit round to $xx) Bef hours used this year 1 2 3 4 6 " 9 10 Ending Accumulated Depreciation Balance Ending Book Value JOURNAL ENTRY-Depreciation Expense/Accumulated Depreciation Ending Accumulated Depreciation Balance Ending Book Valve Remember that the final year or two may require a special adjustment