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S PROBLEMS: Worth a total of 180 Points 1.) Venus Company acquired equipment on Jan...

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Accounting

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S PROBLEMS: Worth a total of 180 Points 1.) Venus Company acquired equipment on Jan 1, 2016, for $470,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $30,000. Calculate depreciation expense for 2016 and 2017 under each of the following methods. The equipment is estimated to produce 150,000 units. During 2016 and 2017, the equipment produced 24,000 and 60,000 units, respectively. Round to the nearest dollar. (please show work on back of test or separate sheet of paper.) Find the depreciation expense for 2016 and 2017 using: 2016 Straight-line Double Declining balance 2017 Units of output 2.) Record the following journal entries in journal: 2017 Jan. 1 Purchased equipment for $40,000 cash. July 1 Purchased a building for $90,000 cash. Dec. 31 Record depreciation for both assets. Use straight line depreciation. Equipment has a salvage value of $4,000 and a 10 yr. estimated life. Building has a salvage value of $4,000 and a 20 yr. estimated life. 2018 June 30 Sold the equipment for $24,000 cash. (remember to record depreciation first.)

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