In: Accounting
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
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*.33*10/12) | 18975 | |
Accumlated depreciation | 18975 | ||
2016 | Depreciation expense (69000*33%*2/12+69000*67%*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 | ||