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A machine costing $210,000 with aneight-year life and an estimated $20,000 salvage value is installed in Calhoon Company's factory on February 1. The factory manager estimates the machine will produce 475,000 units of product during its life.
It produces the following units:
year 1, 12140;
year 2, 12240;
year 3, 11960; and
year 4, 11820.
Required
Question 1: Prepare necessary entries (journal and adjusting) for four years from the date of purchase of assets and present the calculation in neat with 3 following methods of depreciation separately
1. Straight Line Method
2. Double Decline Method
3. Units of Production Method
Financial Statement Analysis and Preparation
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