Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The company estimated the equipment...

Yukon Productions Corp. purchased equipment on March 1, 2015, for $69,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $7,400. During 2015, the equipment produced 4,900 units. On November 30, 2016, the machine was sold for $19,000 and had produced 5,700 units that year.

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight-line, single-diminishing-balance, nnits-of-Production

Solutions

Expert Solution

Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods:

Straight line :

Date	accounts & explanation	debit	credit
2015	Depreciation expense (69000-7400/3)*10/12	17111
	Accumlated depreciation		17111

2016	Depreciation expense (69000-7400/3)*11/12	18822
	Accumlated depreciation		18822

Single diminishing balance

Date	accounts & explanation	debit	credit
2015	Depreciation expense (69000.3310/12)	18975
	Accumlated depreciation		18975

2016	Depreciation expense (6900033%2/12+6900067%33%*9/12)	15237
	Accumlated depreciation		15237

Unit of production

Date	accounts & explanation	debit	credit
2015	Depreciation expense (69000-7400/12000)*4900	25153
	Accumlated depreciation		25153

2016	Depreciation expense (69000-7400/12000)*5700	29260
	Accumlated depreciation		29260

ekkarill92 answered 9 months ago

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