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Recording and Preparing Schedule Using Sums-of-the-Years'-Digits Method Depreciation, Partial Year A fixed asset was purchased...

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Accounting

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Recording and Preparing Schedule Using Sums-of-the-Years'-Digits Method Depreciation, Partial Year A fixed asset was purchased October 1 of Year 1 , costing $60,000, with a residual value of $12,000 and an estimated three-year useful life. Required a. Prepare a schedule of depreciation that shows annual depreciation expense, and year-end accumulated depreciation and book value, over the useful life of the asset assuming that the company depreciates the asset using sum of-the-years-digits method. b. Record the entry to recognize depreciation for the year ended December 31 of Year 1. c. Record the entry to recognize depreciation for the year ended December 31 of Year 2. Note: Carry all decimals in calculations; round all final answers to the nearest dollar: b. \begin{tabular}{|c|c|c|c|c|} \hline Date & Account Name & & Dr. & Cr. \\ \hline Dec. 31, Year 1 & & v & 0 & 0 \\ \hline & & & 0 & 0 \\ \hline & To record depreciation. & & & \\ \hline \end{tabular} c. \begin{tabular}{|c|c|c|c|c|} \hline Date & Account Nam & & Dr. & Cr. \\ \hline \multirow[t]{3}{*}{ Dec. 31, Year 2} & & & 0 & 0 \\ \hline & & & 0 & 0 \\ \hline & To record depreciation. & & & \\ \hline \end{tabular}

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