Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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Estimates
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|
| Machine |
Life |
Residual Value |
Depreciation Method |
| A |
5 years |
|
$ |
600 |
|
Straight-line |
| B |
40,000 hours |
|
|
1,000 |
|
Units-of-production |
| C |
6 years |
|
|
2,000 |
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Double-declining-balance |
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TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value).
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Record the depreciation expense for the three used machines at the end of year 1 assuming each machine will have its own accumulated depreciation account