Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 6 6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the double-declining balance depreciation expense for the forklift for year 2. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
Required information CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost $26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year. The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and was expected to last six years, with a residual value of $2,060. CP9-1 (Algo) Part 6 6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A Record the double-declining balance depreciation expense for the forklift for year 2. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 76APSA
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![Required information
CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost
$26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into
use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery
was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.
The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and
was expected to last six years, with a residual value of $2,060.
CP9-1 (Algo) Part 6
6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is required
for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
A
Record the double-declining balance depreciation expense for the forklift for
year 2.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b3f7f60-ea7d-412d-bfab-14e1e3d92302%2Fc28554e1-83bb-4cee-83ed-5bf6efbaded6%2Fr54hjcp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
CP9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Tulip Corporation bought machinery, shelving, and a forklift. The machinery initially cost
$26,800 but had to be overhauled (at a cost of $1,440) before it could be installed (at a cost of $720) and finally put into
use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery
was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $380 in each year.
The shelving cost $9,450 and was expected to last 5 years, with a residual value of $630. The forklift cost $12,150 and
was expected to last six years, with a residual value of $2,060.
CP9-1 (Algo) Part 6
6. Prepare the journal entry to record double-declining balance depreciation expense for the forklift for year 2. (If no entry is required
for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
A
Record the double-declining balance depreciation expense for the forklift for
year 2.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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