Required information

Problem $7-5$A $($Algo$)$ Determine depreciation under three methods $($LO$7-4)$

$[$The following information applies to the questions displayed below.$]$

University Car Wash purchased new soap dispensing equipment that cost $$267,000$ including installation. The company

estimates that the equipment will have a residual value of $$24,000.$ University Car Wash also estimates it will use the

machine for six years or about $12,000$ total hours. Actual use per year was as follows:

Problem $7-5$A $($Algo$)$ Part $1$

Required:

Prepare a depreciation schedule for six years using the straight$-$line method. $($Do not round your intermediate calculations.$)!$

Required information

Problem $7-5$A $($Algo$)$ Determine depreciation under three methods $($LO$7-4)$

$[$The following information applies to the questions displayed below.$]$

University Car Wash purchased new soap dispensing equipment that cost $$267,000$ including installation. The company

estimates that the equipment will have a residual value of $$24,000.$ University Car Wash also estimates it will use the

machine for six years or about $12,000$ total hours. Actual use per year was as follows:

Problem $7-5$A $($Algo$)$ Part $3$

Prepare a depreciation schedule for six years using the activity$-$based method. $($Round your "Depreciation Rate" to $2$ decimal

places and use this amount in all subsequent calculations.$)$ Required information

Exercise $7-11($Algo$)$ Determine depreciation under three methods $($LO$7-4)$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Speedy Delivery Company purchases a delivery van for $$37,600.$ Speedy estimates that at the end of its

four$-$year service life, the van will be worth $$5,800.$ During the four$-$year period, the company expects to drive the van

$159,000$ miles.

Actual miles driven each year were $42,000$ miles in year $1$ and $45,000$ miles in year $2.$

Required:

Calculate annual depreciation for the first two years using each of the following methods. $($Do not round your

intermediate calculations.$)$

Exercise $7-11($Algo$)$ Part $2$

Double$-$declining$-$balance. Required information

Exercise $7-11($Algo$)$ Determine depreciation under three methods $($LO$7-4)$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Speedy Delivery Company purchases a delivery van for $$37,600.$ Speedy estimates that at the end of its

four$-$year service life, the van will be worth $$5,800.$ During the four$-$year period, the company expects to drive the van

$159,000$ miles.

Actual miles driven each year were $42,000$ miles in year $1$ and $45,000$ miles in year $2.$

Required:

Calculate annual depreciation for the first two years using each of the following methods. $($Do not round your

intermediate calculations.$)$

Exercise $7-11($Algo$)$ Part $2$

Double$-$declining$-$balance.Required information

Exercise $7-17($Algo$)$ Record the sale of equipment $($LO$7-6)$

$[$The following information applies to the questions displayed below.$]$

Freeman Landscaping purchased a tractor at a cost of $$40,000$ and sold it three years later for $$20,300.$ Freeman

recorded depreciation using the straight$-$line method, a five$-$year service life, and a $$2,500$ residual value. Tractors are

included in the Equipment account.

Exercise $7-17($Algo$)$ Part $1$

Required:

Record the sale. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account

field.$)$

Journal entry worksheet

$1$

Record the sale of tractor.

Note: Enter debits before credits.

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