The following information was provided relating to an asset: Acquisition date: 1 January 20X1 Acquisition cost: $76,000 Residual value: $6,000 Estimated useful life: 5 years Service hours: 35,000 Productive output in units: 7,000 Actual Data: Service Hours Units Produced 20X1 4,700 400 20X2 6,900 1,100 20X3 7,200 1,600 20X4 7,600 1,800 20X5 8,600 2,100 35,000 7,000 Required: Prepare the journal entries to record depreciation expense for each year of the asset’s life, using the double declining balance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The following information was provided relating to an asset: Acquisition date: 1 January 20X1 Acquisition cost: $76,000 Residual value: $6,000 Estimated useful life: 5 years Service hours: 35,000 Productive output in units: 7,000 Actual Data: Service Hours Units Produced 20X1 4,700 400 20X2 6,900 1,100 20X3 7,200 1,600 20X4 7,600 1,800 20X5 8,600 2,100 35,000 7,000 Required: Prepare the journal entries to record depreciation expense for each year of the asset’s life, using the double declining balance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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The following information was provided relating to an asset:
- Acquisition date: 1 January 20X1
- Acquisition cost: $76,000
- Residual value: $6,000
- Estimated useful life: 5 years
- Service hours: 35,000
- Productive output in units: 7,000
Actual Data:
| Service Hours |
Units Produced |
|
| 20X1 | 4,700 | 400 |
| 20X2 | 6,900 | 1,100 |
| 20X3 | 7,200 | 1,600 |
| 20X4 | 7,600 | 1,800 |
| 20X5 | 8,600 | 2,100 |
| 35,000 | 7,000 | |
Required:
Prepare the journal entries to record
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