I need answers on the attach file.. thanks

I need answers on the attach file.. thanks

ATTACHMENT PREVIEW

Download attachment

Outback uses the units of production depreciation method.
Year
Depreciation
Accumulated Depreciation
1
2
3
4
Prepare journal entries to record the asset’s acquisition, annual depreciation for each year, and the asset’s eventual sale for $250,000.
Purchase:
Year 1:
Year 2:
Year 3:
Year 4:
Sale:
On January 1, 20X6, Outback Air purchased a new engine for one of its airplanes used to transport adventurers to
remote regions of western Australia.
The engine cost $750,000 and has a service life of 10,000 flight hours.
Regulations require careful records of usage, and the engines must be replaced or rebuilt at the end of the 10,000 hour
service period.
Outback simply chooses to sell its used engines and acquire new ones.
Used engines are expected to
be resold for 1/3 of their original cost.
Assuming that the engine was used as
follows, prepare a schedule showing
annual depreciation expense,
accumulated depreciation, and related
calculations for each year.
20X6
1,500 hours
20X7
4,000 hours
20X8
3,000 hours
20X9
1,500 hours

Unlock Solution Unlocking…

Outback uses the double declining depreciation method.
Year
Depreciation
Accumulated Depreciation
Data:
1
Cost
2
Salvage
3
Useful life
4
Prepare journal entries to record the asset’s acquisition, annual depreciation for each year, and the asset’s eventual sale for $250,000.
Purchase:
Year 1:
Year 2:
Year 3:
Year 4:
Sale:
On January 1, 20X6, Outback Air purchased a new engine for one of its airplanes used to transport adventurers to
remote regions of western Australia.
The engine cost $750,000 and has a service life of 10,000 flight hours.
Regulations require careful records of usage, and the engines must be replaced or rebuilt at the end of the 10,000 hour
service period.
Outback simply chooses to sell its used engines and acquire new ones.
Used engines are expected to
be resold for 1/3 of their original cost. Useful life is 4 years.

Show entire document

Leave a Comment