Accounting I

PROBLEM 1-CH9

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 12 - Homework Assignment (CH9)
Assignment due by Sunday, November 5, 2023
	PROBLEM 1 - Comparing three depreciation methods					(Obj. 2)
	Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years,
	or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2,
	and 4,t00 hours in Year 3.
	Instructions
	1	Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-lin method, (b) the units-of-activity
		method, and '(c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method.
		1.
			Depreciation Expense
						a.		b.		c.
						Straight-		Units-of-		Double-Declining-
				Year		Line		Activity		Balance
				1		$ -		$ -		$ -
				2		-		-		-
				3		-		-		-
				Totals		$ -		$ -		$ -
				Calculations:
				Straight-line method:
				(Cost	− Residual Value)		/	Years	=	Yearly Depreciation
				$ -	−	$ -	/	0	=	$ -
				Units-of-activity method:
				(Cost	− Residual Value)		/	Total Hours	=	Rate
				$ -	−	$ -	/	0	=	$0.00
						Rate	x	Hours	=	Yearly Depreciation
				Year 1		$0.00	x	0	=	$ -
				Year 2		$0.00	x	0	=	$ -
				Year 3		$0.00	x	0	=	$ -
				Double-declining-balance method:
						Depreciable Balance
							x	Rate	=	Yearly Depreciation
				Year 1		$ -	x	0.000000	=	$ -
				Year 2		$ -	x	0.000000	=	$ -
				Since depreciation cannot cause book value to fall below residual value:
						Depreciable Balance		Residual Value
							−		=	Yearly Depreciation
				Year 3		$ -	−	$ -	=	$ -

PROBLEM 2-CH10

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 12 - Homework Assignment (CH10)
Assignment due by Sunday, November 5, 2023
	PROBLEM 2 - Entries for installment note transactions (Obj.4)
	On January 1, of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires
	annual payment of $43,620, beginning on December 31 of Year 1.
	Instructions:
	a.	Prepare a table for this installment note, similar to the one presented in Exhibit 4. Round to the nearest dollar.
			Amortization of Installment Notes
			For the Year Ending		January 1 Carrying Amount		Note Payment (Cash Paid)		Interest Expense		Decrease in Notes Payable		Dec. 31 Carrying Amount
			Dec. 31, Year 1		$ -		$ -		$ -		$ -		$ -
			Dec. 31, Year 2		-		-		-		-		-
			Dec. 31, Year 3		-		-		-		-		-
			Dec. 31, Year 4		-		-		-		-		-
							$ -		$ -		$ -
	b.	Journalize the entries for the issuance of the note and the four annual note payments.
			Year 1								Debit		Credit
			Jan. 1	Cash							- 0
				Notes Payable									- 0
			Dec. 31	Interest Expense							- 0
				Notes Payable							- 0
				Cash									- 0
			Year 2
			Dec. 31	Interest Expense							- 0
				Notes Payable							- 0
				Cash									- 0
			Year 3
			Dec. 31	Interest Expense							- 0
				Notes Payable							- 0
				Cash									- 0
			Year 4
			Dec. 31	Interest Expense							- 0
				Notes Payable							- 0
				Cash									- 0