!Required information[The following information applies to the questions displayed below.]At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $95,000. It is expected to have afive-year life and a $15,000 salvage value.c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses:(1) Straight-line depreciation.(2) Double-declining-balance depreciation.Complete this question by entering your answers in the tabs below.Req C1Req C2Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses straight-linedepreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet1Record depreciation expense.7 !Required information[The following information applies to the questions displayed below.]At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $95,000. It is expected to have afive-year life and a $15,000 salvage value.b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double-declining-balance methods in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA todesignate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an element is notaffected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)CashAssets++Balance Sheet+Book Value ofComputerStraight-line depreciation-1111Double-declining-balance depreciation=COPELAND DRUGSTOREHorizontal Statements ModelStockholders'EquityRetainedEarningsRevenueIncome StatementIIExpenses ===11Net IncomeStatement of CashFlows

Depreciation is a measure of wearing out of assets from its use efflux over time or obsolete through…

Answered: At the beginning of Year 1, Copeland…

At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $95,000. It is expected to have a five-year life and a $15,000 salvage value.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.23MCE

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