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

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

Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expecte

An estimated liability: 1. Is an unknown liability of a certain amount. 2. Is a known obligation of an uncertain amount that can be reasonably estimated. 3. Is a liabil

The net cash provided by operating activities is affected by

Importance of The bank statement Bank sends out bank statements each month. It's significant that this statement and checking account balance balances. There are certain items

Q. What is FOB shipping point? FOB shipping point signifies free on board at shipping point. The buyer acquires all transportation costs after the merchandise has been loaded o

Instructions: 1. Using the journal entry sheet provided, record the transactions for January. January is the first full month of operations. 2. After journalizing the transactio

1) A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assu

Q. What are Accrued items explain with example? Delayed items consist of two types of adjusting entries asset/expense adjustments and liability/revenue adjustments. For instanc