Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $270,000 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: Year 1 2 3 4 5 6 Year 1 2 3 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $270,000 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:
Year
1
2
3
4
5
6
Year
1
2
3
Hours Used
3,100
1,100
1,200
2,800
2,600
1,200
Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Straight-Line
End of Year Amounts
Depreciation
Expense
Accumulated
Depreciation
Book Value
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $270,000 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: Year 1 2 3 4 5 6 Year 1 2 3 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value
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