FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Peter's Records purchases a new Record-Pressing Machine for $77,000,
on the 1st January 2020
The machine is expected to have a useful life of 5 years, and a residual
value of $1,000.
The machine is capable of printing 200,000 vinyl records during its lifetime.
Peter applies the Units-of-Production depreciation method to all his
machinery
The quantity of vinyl records Peter will make in the future is fixed at:
1st Year
53,000 units
2nd Year
34,500 units
3rd Year
32,900 units
4th Year
47,200 units
5th year
32,400 units
The correct journal entry to record the depreciation for the 3rd Year would
be:
Select one:
а.
Debit Depreciation Expense $12,502
Credit Accumulated Depreciation $12,502
Transcribed Image Text:O b.
Debit
Accumulated Depreciation
$11,712.40
Credit Depreciation Expense $11,712.40
С.
Debit
Accumulated Depreciation
$12,282.20
Credit Depreciation Expense $12,282.20
d.
Debit
Depreciation Expense
$12,282.20
Credit Accumulated Depreciation $12,282.20
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