How to Prepare a schedule of depreciation expense per year

Mama’s Fried Chicken bought equipment on January 2. 2012. for \$30.000. The equipment was expected to remain in sen/ice four years
and to perform 6.000 fryjobs. At the end ofthe equipment’s useful life. Mama’s estimates that its residual value will be \$6.000. The
equipment performed 600 jobs the first year. 1.800 the second year. 2.400 the third year. and 1.200 the fourth year.

Requirements

1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years

under double~declining«balance depreciation. the company switched to the straight-line method. Show your computations. Note:
Three depreciation schedules must be prepared.

2. Which method tracks the wear and tear on the equipment most closely?

Requirement 1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After
two years under double-decliningobalance depreciation. the company switched to the straight-line method. Show your computations.
Note: Three depreciation schedules must be prepared.

Begin with straight-line depreciation.

Depreciation Accumulated Book
SL [L] x Depreciation Rate = Expense Depreciation Value

How to Prepare a schedule of depreciation expense per year

Mama’s Fried Chicken bought equipment on January 2. 2012. for \$30.000. The equipment was expected to remain in sen/ice four years
and to perform 6.000 fryjobs. At the end ofthe equipment’s useful life. Mama’s estimates that its residual value will be \$6.000. The
equipment performed 600 jobs the first year. 1.800 the second year. 2.400 the third year. and 1.200 the fourth year.

Requirements

1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After two years

under double~declining«balance depreciation. the company switched to the straight-line method. Show your computations. Note:
Three depreciation schedules must be prepared.

2. Which method tracks the wear and tear on the equipment most closely?

Requirement 1. Prepare a schedule of depreciation expense per year for the equipment under the three depreciation methods. After
two years under double-decliningobalance depreciation. the company switched to the straight-line method. Show your computations.
Note: Three depreciation schedules must be prepared.

Begin with straight-line depreciation.

Depreciation Accumulated Book
SL [L] x Depreciation Rate = Expense Depreciation Value