Golden Sales has bought $135,000 in fixed assets on January 1 associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their four-year service life. Golden Sales managers want to evaluate the options of depreciation.
(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be postedat the end of each of the years.
(b) Write the journal entries for each year of the service life for these assets using the double-declining-balancemethod.

Question

Golden Sales has bought $135,000 in fixed assets on January 1 associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their four-year service life. Golden Sales managers want to evaluate the options of depreciation.​
(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be postedat the end of each of the years.
(b) Write the journal entries for each year of the service life for these assets using the double-declining-balancemethod.

Quizplus · Accepted Answer

The Answer of Golden Sales has bought $135,000 in fixed assets on January 1 associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their four-year service life. Golden Sales managers want to evaluate the options of depreciation.​
(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be postedat the end of each of the years.
(b) Write the journal entries for each year of the service life for these assets using the double-declining-balancemethod.

Golden Sales Has Bought $135,000 in Fixed Assets on January