HWK___8 - Depreciation Accumulated Book Year Computation...

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HOMEWORK #8 DUE FRIDAY, OCT. 31 (6 points) Crazy JJ’s, Inc, purchased a new machine on January 1, 2008, at a cost of $90,000. The machine’s estimated useful life at the time of the purchase was 5 years, with an estimated salvage value of $6,000. The machine was estimated to have a production capacity of 300,000 units, with the expectation of production over the life as follows: 2008-75,000 units; 2009-70,000 units; 2010-60,000 units; 2011-50,000 units; and 2012-45,000 units. INSTRUCTIONS: A. Prepare a complete depreciation schedule from 2008 through 2012 for each of the methods listed below. 1. straight-line depreciation. 2. double (200%)- declining- balance. 3. units-of-production. Your schedules should appear as follows: Method_________
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Unformatted text preview: Depreciation Accumulated Book Year Computation Expense Depreciation Value B. Record, in journal entry form, the depreciation expense for 2008 using straight-line depreciation. Below your entry indicate how the F/S were affected by this entry. Organize your answer in tabular from, using the column headings shown below. Use I for increase, D for decrease, and NE for no effect. Income Statement Balance Sheet Transaction Revenue - Expense = NI Assets = Liabilities + Owners Equity C. Assume Crazy JJs, Inc sells the machine on December 31, 2010, for $38,000 cash. Compute the resulting gain or loss from the sale using straight-line depreciation and record the journal entry to recognize the sale....
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