Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year...

Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year 1 at a cost of $100,000. The machine’s useful life is estimated at 10 years, or 500,000 units of product, with a $5,000 salvage value.

Prepare the journal entry to record the acquisition of the manufacturing machine.

Account	DR	CR

b. Determine the depreciation expense on the machine at the end of year 1 year under the

straight-line method of depreciation. Also, record the journal entry to record depreciation expense.

Account	DR	CR

c. Same facts as above, but now determine the depreciation expense on the machine at the end of year 1 year under the units-of-production method of depreciation. Assume 70,000 units of product were manufactured in year 1. Also, record the journal entry to record depreciation expense.

Account	DR	CR

d. Same facts as above, but now Determine the depreciation expense on the machine at the end of year 1 year under the Double Declining Balance method of depreciation. Also, record the journal entry to record depreciation expense

Account	DR	CR

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Expert Solution

Answer is given below with working notes

ekkarill92 answered 1 year ago

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