Please show all work and provide explanations Prepare a depreciation schedule showing depr. exp., accumulated depreciation...

Please show all work and provide explanations

Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.
3 schedules for the 3 methods straight-line, units-of-production, double declining basis. Asset is a delivery Truck.

Est. Life ………… 5
Orig. Cost Basis 24,500.00
Est. Residual Value 2,500.00
Est. total mileage 100,000
miles driven, Yr 1 21,400
miles driven, Yr 2 19,700
miles driven, Yr 3 18,900
miles driven, Yr 4 23,400
miles driven, Yr 5 16,600
Part 2:
Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)
assume it was sold for 11,720.00

Expert Solution

PART- I:
1) Straight line depreciation per year = [Cost-Salvage Value]/Life in years
= (24500-2500)/5 = $4,400.
Year	Beginning BV	Depreciation Expense	Accumulated depreciation	Ending BV
1	24500	4400	4400	20100
2	20100	4400	8800	15700
3	15700	4400	13200	11300
4	11300	4400	17600	6900
5	6900	4400	22000	2500
2) Units of production:
Depreciation per unit of production = (Cost-Salvage value)/Expected total units
= (24500-2500)/100000 = $0.22 per mile.
Year	Miles driven	Beginning BV	Depreciation Expense	Accumulated depreciation	Ending BV
1	21400	24500	4708	4708	19792
2	19700	19792	4334	9042	15458
3	18900	15458	4158	13200	11300
4	23400	11300	5148	18348	6152
5	16600	6152	3652	22000	2500
3) Double declining method:
Depreciation rate = (100%/5)*2 = 40%
Year	Beginning BV	Depreciation Expense	Accumulated depreciation	Ending BV
1	24500	9800	9800	14700
2	14700	5880	15680	8820
3	8820	3528	19208	5292
4	5292	2117	21325	3175
5	3175	675	22000	2500
PART-2:
GENERAL JOURNAL ENTRY:			Debit	Credit
	Cash		11720
	Accumulated depreciation		13200
	Gain on sale			420
	Delivery truck			24500

ekkarill92 answered 1 year ago

Please provide formulas for each entry with explanations. Thank you. Prepare a depreciation schedule showing depr....

Please provide formulas for each entry with explanations. Thank you. Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year. 3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck. Est. Life ………… 4 Orig. Cost Basis 24,700.00 Est. Residual Value 1,000.00 Est. total mileage 100,000 miles driven, Yr 1 22,800 miles driven, Yr 2 24,400 miles driven, Yr 3 29,400 miles driven, Yr 4 23,400 Part 2: Assuming the...

Part 1: Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year....

Part 1: Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year. 3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck. Est. Life … 4 Orig. Cost Basis 26,300.00 Est. Residual Value 1,500.00 Est. total mileage 100,000 miles driven, Yr 1 23,400 miles driven, Yr 2 20,100 miles driven, Yr 3 33,100 miles driven, Yr 4 23,400 Part 2: Assuming the truck is sold at the end of yr....

Please show all calculations and explanations for each row and colum (Depreciation expense,accumulated depreciation,ending book value...

Please show all calculations and explanations for each row and colum (Depreciation expense,accumulated depreciation,ending book value ect.) Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year. 3 schedules for the 3 methods straight-line, units-of-production, double declining basis. Asset is a delivery Truck. Est. Life ………… 5 Orig. Cost Basis 24,500.00 Est. Residual Value 2,500.00 Est. total mileage 100,000 miles driven, Yr 1 21,400 miles driven, Yr 2 19,700 miles driven, Yr 3 18,900 miles driven,...

Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment...

Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. 2. Which method tracks the wear and tear on the equipment most closely? Mama'sMama's Fried Chicken bought equipment on JanuaryJanuary 22, 20182018, for $ 18 comma 000$18,000. The equipment was expected to remain in service for four years and to operate for 3 comma 0003,000...

Please show all steps: Use MACRS to compute the depreciation schedule for a carbonated beverage dispensing...

Please show all steps: Use MACRS to compute the depreciation schedule for a carbonated beverage dispensing machine that cost $60,000 (use the 3 yr depreciation schedule). Assume salvage value is $10000.

Please show all work and explanations. Thank you. Warren Plastic, LLC complete these transactions in year...

Please show all work and explanations. Thank you. Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them. date yr 2/17 1 Purchased equipment for 47,000, signed a 3 month note, 9.25%. 2/28 1 Recorded the month's sales of 205,000, one-third cash, two-third's credit. Sales tax rate is 5.1% 3/20 1 Sent Feb. sales tax to the state. 5/17 1 paid off the note dated 2-17-yr 1 5/31 1 Borrowed $185,000 on...

Year cost to be depreciated depreciation exp. per year Accumulated depreciation net remaining undepreciated cost 1...

Year cost to be depreciated depreciation exp. per year Accumulated depreciation net remaining undepreciated cost 1 2 3 4 5 6 7 8 9 10 Complete the following: Depreciation expense per year, accumulated depreciation year, and net remaining undepreciated cost. Assumptions are as follows: Cost to be depreciated: 20,000 Estimated useful life of equipment: 10 years Year

Please show all work and explanations. Thank you On 1-1-2017 Avion, Inc. Sold Bonds with these...

Please show all work and explanations. Thank you On 1-1-2017 Avion, Inc. Sold Bonds with these particulars: Face amt. of Bonds 825,000 Matures on 1-1-2027, in 10 yrs. Stated annual rate of int. 12.00% Effective annual rate of interest 10.00% Int. is paid every six months; 6-30, 12-31 Req. 1, Assume the effective Interest Method in accounting for these Bonds, build a 10 year amortization table Req. 2, Give General Journal entries to record the sale of the bonds, and...

Please finish all the way through and show all work Hawkins Engineering’s management wants to prepare...

Please finish all the way through and show all work Hawkins Engineering’s management wants to prepare budgets for one of its products, GalaxyRS, for July 2019. The firm sells the product for $800 per unit and has the following expected sales (in units) for these months in 2019: April May June July August September 6,000 4,000 5,600 6,500 6,800 7,800 Typically, cash sales for Hawkins represent 20% of sales while credit sales represent 80%. Hawkins bills customers on the first...

Please show all work in order to get credit on an excel file. If you provide...

Please show all work in order to get credit on an excel file. If you provide only the answers without showing your work, I will not be able to provide any credit if your answer is wrong. Petrus has an opportunity to make two investments, but he can only afford to make one of them. Each one costs $ 25,000,000. The first investment can be sold in 14 years for $ 98,500,000 and has no periodic cash flow. The second...

Question