# Compare Three Depreciation Methods

Compare Three Depreciation Methods

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PR 10-2B

 Calculations: Straight-line method: ( – ) ÷ = per year Units-of-production method: ( – ) ÷ = per hour 2008 @ = 2009 @ = 2010 @ = Declining-balance method: 2008 x = 2009 ( – ) x = 2010 ( – ) – = Depreciation Expense Units-of- Declining- Straight-Line Production Balance Year Method Method Method 2008 2009 2010 Total

PR 10-5B

 Date Description

PR 11-2B

1. a. & b.

1. a. & b.

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2: On June 8, Acme Co. issued an 80,000 dollars, 6percent, 120-day note payable to Still Co. What is the maturity value of the note?

1. 80,100 dollars
b. 84,800 dollars
c. 81,600 dollars
d. 81,200 dollars

3: An employee receives an hourly rate of 25 dollars, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 46 federal income tax withheld, 350 dollars; cumulative earnings for year prior to current week, 99,700 dollars; social security tax rate, 6.0percent on maximum of 100,000 dollars; and Medicare tax rate, 1.5percent on all earnings. What is the net amount to be paid the employee?

1. 875.00 dollars
b. 838.62 dollars
c. 857.00 dollars
d. 1133.14 dollars

4: From problem 10-2B, the total amount of depreciation expense by (a) the straight-line method is:

1. 63,000 dollars
b. 64,000 dollars
c. 65,000 dollars
d. 66,000 dollars

5: From problem 10-2B, the total amount of 2009 depreciation expense by (a) the straight-line method is:

1. 20,000 dollars
2. . 19,800 dollars
3. 21,000 dollars
d. 32,000 dollars

6: From problem 10-2B, the total amount of 2009 depreciation expense by (b) the Units-of-Production method is:

1. 22,670 dollars
b. 22,680 dollars
c. 22,690 dollars
d. 22,700 dollars

7: From problem 10-2B, the total amount of 2010 depreciation expense by (C) the Double-Declining method is:

1. 1,050 dollars
b. 2,000 dollars
c. 2,050 dollars
d. 3,000 dollars

8: From PR 10-5B, the correct journal entry for Jan. 2 is:

1. (Debit) Cash 69,000 dollars

(Credit) Delivery Equipment 69,000 dollars
b. (Debit) Delivery Equipment 69,000 dollars (Credit) Cash 69,000 dollars
c. (Debit)Depreciation Expense-Delivery Equipment 69,000 dollars(Credit) Cash 69,000 dollars

9: From PR 10-5B, the correct journal entry for October 24 is:

1. (Debit) Truck Repair Expense 415 dollars (Credit)Cash 415 dollars
b. (Debit) Cash 415 dollars (Credit)Truck Repair Expense 415 dollars
c. (Debit) Sales Revenue 415 dollars (Credit)Cash 415 dollars

10: From PR 11-2B, part 2b, the entry to record the Jan. 4 employer’s payroll taxes on the payroll to be paid Jan. 4 is:

1. (Debit) Payroll Tax Expense 120,694 dollars

(Credit)Social Security Tax Payable 58,840 dollars

(Credit)Medicare Tax Payable 15,210 dollars

(Credit)State Unemployment Tax Payable 38,532 dollars

(Credit)Federal Unemployment Tax Payable 8,112 dollars
b. (Debit) Payroll Tax Expense 112,694 dollars

(Credit)Social Security Tax Payable 50,840 dollars

(Credit)Medicare Tax Payable 15,210 dollars

(Credit)State Unemployment Tax Payable 38,532 dollars

(Credit)Federal Unemployment Tax Payable 8,112 dollars
c. (Debit) Payroll Tax Expense 122,694 dollars

(Credit)Social Security Tax Payable 60,840 dollars

(Credit)Medicare Tax Payable 15,210 dollars

(Credit)State Unemployment Tax Payable 38,532 dollars

(Credit)Federal Unemployment Tax Payable 8,112 dollars

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