Qz 2 Acct 301 BARRY Spring 2016 - Problem Q 1 30 On July 1...

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Problem: Q 1 30% On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machine produced 15,000 units. For the year ending June 30, 2016, the machine produced 10,000 units. 1. Using the following depreciation methods (straight line, units of production) calculate the depreciation for the year ending 6/30/15 and present each of the three journal entries in proper form. 2. On July 1, 2016 the machine is sold for $10,000. Complete the journal entry in proper form based on your calculations under each of the depreciation methods (see item 1 in this problem). You will present two separate, independent journal entries. Short Answer 2: 10% Describe a Classified Income Statement. Include a description of the calculations on the statement. Why are the calculations important? It is a financial report translating complex information into an easy to understand break down. To include subtotals of revenue and expenses. It is broken down into or classified into: Assets, Liabilities, Equity, and other entity forms. Financial statements often do not tell the whole story; calculations on the classified balance sheet help to clarify certain sums and totals as it may not be very obvious due to the different groups of items.
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