Prepare a schedule of depreciation expense for an equipment, Accounting Basics

1. Mama's Fried Chicken bought equipment on January 2, 2010, for $15,000.  The equipment was expected to remain in service 4 years and to perform 3,000 fry jobs.  At the end of the equipment's useful life, Mama's estimates that its residual value will be $3000.  The equipment performed 300 jobs the first year, 900 the second year,1200 the third, and 600 the fourth year.  Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods.  After two years under the double-declining-balance depreciation, the company switched to the straight-line method.  Show your computations. 

Note:  3 depreciation schedules must be prepared.

2.  Which method tracks the wear and tear on the equipment most closely?

 

Posted Date: 3/9/2013 12:20:04 AM | Location : United States







Related Discussions:- Prepare a schedule of depreciation expense for an equipment, Assignment Help, Ask Question on Prepare a schedule of depreciation expense for an equipment, Get Answer, Expert's Help, Prepare a schedule of depreciation expense for an equipment Discussions

Write discussion on Prepare a schedule of depreciation expense for an equipment
Your posts are moderated
Related Questions
SCENARIO In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the org

What if the public holiday falls on a rest day? how to pay and which one is?

Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $90,000 a patent with an estimated useful life of 5 years an

What steps would you take before approving an invoice for payment? Ans) Following steps should be taken.. ? Certify the invoice once it is matched for checking any holds..

XYZ plc provides engineering and consultancy services to the oil and gas industry.  Over the past few years, they have incurred expenditure of £1m researching and developing a new


What is Beer direct materials and raw materials? Raw materials are the basic materials and parts that are to be used in the manufacturing process Raw materials that can be ph

Q. Understand how to account for transportation costs? FOB terms are particularly important at the end of an accounting period. Goods in transit after that belong to either the

Goodwill is an intangible asset of a organization which contains company reputation, fame etc., By goodwill company share value may enhances

Worthington Company issued 1,000,000 face value, 10% bonds on July 1 2012, when the market rate of interest was 12%. Interest payments are due every July 1 and January 1. Worthin