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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $80,600. The machine's useful life is estimated at 10 years, or 388,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 32,800 units of product.

Exercise 8-5 Units-of-production depreciation LO P1

Determine the machines second-year depreciation using the units-of-production method. options for the first box of the numerator

• Beginning book value
• Cost
• Cost minus salvage

Options for the first box of Denominator

• Double the SL rate
• Estimated Useful life (years)
• Total units of production

Rodriguez Corporation issues 17,000 shares of its common stock for $302,700 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

1. The stock has a $16 par value.
2. The stock has neither par nor stated value.
3. The stock has a $8 stated value.

2) Record the issue of 17,000 shares of no-par, no-stated value common stock for $302,700 cash.

3) Record the issue of 17,000 shares of $8 stated value common stock for $302,700 cash.

Options for the General Journal

• Building
• Cash
• Common dividend payable
• Common stock dividend distributable
• Common stock, $0.50 par value
• Common stock, $1 par value
• Common stock, $1 stated value
• Common stock, $16 par value
• Common stock, $20 par value
• Common stock, $8 stated value
• Common stock, $8 stated value
• Common stock, no-par value
• Contributed capital, treasury stock
• Income summary
• Inventory
• Land
• Machinery
• Note payable
• Organization expenses
• Paid-in capital in excess of par value, common stock
• Paid-in capital in excess of par value, preferred stock
• Paid-in capital in excess of stated value, common stock
• Preferred stock, $50 par value
• Retained earnings

Units-of-production Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: v:/ Depreciation expense per unit Year Annual Production (units) Depreciation Expense Journal entry worksheet Record the issue of 17,000 shares of $16 par value common stock for $302,700 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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