Chapter 8 assignment part 1
Problem 1
Cost
$ 150,000
Estimated Useful life(years)
5
Estimated Units
200,000
Salvage Value
$ 25,000
Show the Journasl entries for Years 1-5 to book depreciation
for the following methods:
1. Straight line Method
2. Double Declining Balance
3. Units of of Production
(Assume units are Y1= 70,000, Y2, 50,000, Y3 30,000, y4
25,000, Y5 25000).
Problem 2
For the same information in problem 1, assume that after 2
years and at the beginning of year 3 you revise your
estimates so that now you expect the item to last 6 years and
after 6 years you expect the salvage value to be 15,000.
Show the depreciation journal entries for all 6 years using
only the straight line method
