please answer each part clearly with tables that provided I submited three times
ID: 2580611 • Letter: P
Question
please answer each part clearly with tables that provided I submited three times but I dont get good answers
Problem 9-7A a-b
Sandhill Productions Corp. purchased equipment on March 1, 2018, for $60,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $8,600. During 2018, the equipment produced 4,900 units. On November 30, 2019, the machine was sold for $19,000 and had produced 5,600 units that year.
Date
Account Titles and Explanation
Debit
Credit
2018
Mar. 1
Dec. 31
2019
Nov. 30
(To record depreciation expense)
Nov. 30
Date
Account Titles and Explanation
Debit
Credit
2018
Mar. 1
Dec. 31
2019
Nov. 30
(To record depreciation expense)
Nov. 30
Date
Account Titles and Explanation
Debit
Credit
2018
Mar. 1
Dec. 31
2019
Nov. 30
(To record depreciation expense)
Nov. 30
Problem 9-7A a-b
Sandhill Productions Corp. purchased equipment on March 1, 2018, for $60,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $8,600. During 2018, the equipment produced 4,900 units. On November 30, 2019, the machine was sold for $19,000 and had produced 5,600 units that year.
Explanation / Answer
(1) Straight-line Date Account Titles and Explanation Debit Credit 2018 Mar. 1 Equipement $ 60,000.00 Cash/Bank/Vendor $ 60,000.00 Dec. 31 Depreciation $ 14,277.78 Accumulated Depreciation $ 14,277.78 2019 Nov. 30 Depreciation $ 15,705.56 Accumulated Depreciation $ 15,705.56 (To record depreciation expense) Nov. 30 Bank $ 19,000.00 Accumulated Deprecition $ 29,983.33 Loss on sale $ 11,016.67 Equipment $ 60,000.00 (To record the sale of machine) Annual Depreciation for straight line method: Cost of asset- residual value = (60000-8600)/3 Useful life of asset in years = $ 17,133.33 The equipment for purchased on 1st March, so in the first it was put to use for 10 months Therefore, the depreciation for first 10 months (year 2018)= $ 14,277.78 Next, year 2019 the equipment is sold on 30th November, therefore depreciation for 11 months ( 1st jan to 30th nov)= $ 15,705.56 (2) Double-diminishing-balance Date Account Titles and Explanation Debit Credit 2018 Mar. 1 Equipement $ 60,000.00 Cash/Bank/Vendor $ 60,000.00 Dec. 31 Depreciation $ 16,667.00 Accumulated Depreciation $ 16,667.00 2019 Depreciation $ 28,889.00 Nov. 30 Accumulated Depreciation $ 28,889.00 (To record depreciation expense) Nov. 30 Bank DR $ 19,000.00 Accumulated Deprecition $ 45,556.00 Profit $ 4,556.00 Equipment $ 60,000.00 (To record the sale of machine) (To record the sale of machine) (3) Units-of-Production Date Account Titles and Explanation Debit Credit 2018 Mar. 1 Equipment $ 60,000.00 Cash/Bank/Vendor $ 60,000.00 Dec. 31 Depreciation $ 20,988.33 Accumulated Depreciation $ 20,988.33 2019 Depreciation $ 23,986.67 Nov. 30 Accumulated Depreciation $ 23,986.67 (To record depreciation expense) Nov. 30 Bank $ 19,000.00 Accumulated Deprecition $ 44,975.00 Profit $ 3,975.00 Equipment $ 60,000.00 (To record the sale of machine) Unit of production method Cost of asset- residual value = (60000-8600)/12000 Total expected output 4.28 per unit Depreciation for 2018, 4900 units produced= $ 20,988.33 Depreciation for 2019, 5600 units produced= $ 23,986.67 (c) Complete the following schedule for each method of depreciation and compare the total expense over the two-year period. (Round answers to 0 decimal places, e.g. 5,275.) Straight- Double-Diminishing- Units-of- Line Balance Production Depreciation expense 2018 $ 14,277.78 $16,667.00 $ 20,988.33 2019 $ 15,705.56 $28,889.00 $ 23,986.67 Total depreciation expense for two years $ 29,983.33 $45,556.00 $ 44,975.00 + Loss (or - gain) on disposal $ 11,016.67 $(4,556.00) $ (3,975.00) Net expense for two years $ 20,500.00 $20,500.00 $ 20,500.00
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