Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful...
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Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime. Required: (1) Prepare a table showing depreciation expense and book value of the equipment for the first three years under each of the following methods: a. Straight-line method b. 200% declining balance method Units of output method – actual units produced each year were as follows: 2018 8,000 с. 2019 6,400 2020 4,800 (2) Now assume that at the end of 2020, Monroe Co. decided to sell the equipment. Prepare a journal entry to show the sale if the company received $46,000 for the sale of the equipment. Monroe Co. purchased equipment on January 1, 2018, for $80,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $15,000. Also, the equipment is expected to provide 50,000 units over its lifetime. Required: (1) Prepare a table showing depreciation expense and book value of the equipment for the first three years under each of the following methods: a. Straight-line method b. 200% declining balance method Units of output method – actual units produced each year were as follows: 2018 8,000 с. 2019 6,400 2020 4,800 (2) Now assume that at the end of 2020, Monroe Co. decided to sell the equipment. Prepare a journal entry to show the sale if the company received $46,000 for the sale of the equipment.
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cost Salvage Dep exp Book value 73500 SLM 80000 15000 6500 Cash 46000 6500 67000 Accumulate... View the full answer
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