Q2: Q3: Problem 9-7A (Part Level Submission) Yukon Productions Corp. purchased e

Question

Q2:

Q3:
Problem 9-7A (Part Level Submission) 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 $7,500. During 2015, the equipment produced 4,900 units. On November 30, 2016, the machine was sold for $20,000 and had produced 5,600 units that year. Record all the necessary entries for the years ended December 31, 2015 and 2016, using the following depreciation methods: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round the depreciation rate in the single diminishing-balance method to 2 decimal places, e.g. 0.33% and Round depreciation per unit in the units-of-production depreciation method to 2 decimal places, e.g. 2.25 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line Date Account Titles and Explanation 2015 Mar. 1 Debit Credit Dec. 31 2016 Nov. 30 To record depreciation expense) Nov. 30 (To record the sale of machine) (2) Single-diminishing-balance

Explanation / Answer

As per policy, only one question is allowed to answer at a time, so answering Q1 :

Prob 9-7A) a) 1) Journal entries under Straight Line depreciation method: Date Accounts Title Debit Credit $ 2015 1-Mar Equipment 69000 Cash 69000 (purchase of equipment) 31-Dec Depreciation 17083 20500*10/12=17083 Acc Dep - Equip 17083 (69000-7500 / 3=20500) 2016 30-Nov Depreciation 15375 20500*9/12=15375 Acc Dep - Equip 15375 (depreciation for 9 months) 30-Nov Acc Dep - Equip 32458 Cash 20000 Loss on sale 16542 Equipment 69000 (sale of equipment & loss booked) 2) Journal entries under Single diminishing balance depreciation method: Date Accounts Title Debit Credit $ 2015 1-Mar Equipment 69000 Cash 69000 (purchase of equipment) 31-Dec Depreciation 19165 Acc Dep - Equip 19165 (69000*33.33%)*10/12=19165 2016 30-Nov Depreciation 12458 (69000-19165)*33.33%)*9/12=12458 Acc Dep - Equip 12458 (depreciation for 9 months) 30-Nov Acc Dep - Equip 31623 Cash 20000 Loss on sale 17377 Equipment 69000 (sale of equipment & loss booked) 3) Journal entries under Units of production depreciation method: Date Accounts Title Debit Credit $ 2015 1-Mar Equipment 69000 Cash 69000 (purchase of equipment) 31-Dec Depreciation 25113 Acc Dep - Equip 25113 (69000-7500)*4900/12000=25113 2016 30-Nov Depreciation 28700 (69000-7500)*5600/12000=28700 Acc Dep - Equip 28700 (depreciation for 9 months) 30-Nov Acc Dep - Equip 53813 Cash 20000 Equipment 69000 Income on sale 4813 (sale of equipment & loss booked)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.