Question

Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Pool Corporation purchased for cash new loading equipment for the warehouse on January 1 of Year 1. at an invoice price of $82,500. It also paid $3,400 for freight on the equipment, $2,000 to prepare the equipment for use in the warehouse, and $1150 for insurance to cover the equipment during operation in Year 1 The equipment was estimated to have a residual value of $4.000 and be used over three years or 27,500 hours Required: 1. Record the purchase of the equipment, freight, preparation costs, and insurance on January 1 of Year 2. Create a depreciation schedule assuming Pool Corporation uses the straight-line method 3. Create a depreciation schedule assuming Pool Corporation uses the double-declining-balance method 4. Create a depreciation schedule assuming Pool Corporation uses the units of production method with actual production of 8.700 hours in Year 1. 8.100 hours in Year 2 and 9.300 hours in Year 3. 3. On December 31 of Year 2 before the year-end adjustments, the equipment was sold for $26.000. Record the sale of the equipment assuming the company used the straight-line method Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Recured (If no entry required for a Record the purchase of the equipment, freight preparation costs and insurance on January 1 of Year transaction/event select "No journal entry required in that counted Views Journal entry worksheet Record the purchase of equipment fright

Answer 1

Joum of rentry Requirment ! Year'll Tamil l equipment $825w) 1. c To cash Purchase of equipment) $3400 $340 - Equipment Po 1. To cash c paid freight on equipment) Equipment B 1. To cash cuse of eqw pment in waithe) 201 8200 91150 suso Insurance expense - To cash e insurance expense paid in 1 cash Requirment : TMC 1. Depreciation schedule. spoishline Book Value beginning I Depreciation / Acumulated closing Bouk Value he Gbeginning | Depexpense | Yeoo 59933 27,967 $ 87,900) 24, 967 31,966 55934 59933 27,987 You 83,900 31.9.66 27966

schedule - Down sais Pepreciation - Requirment 3: so-A Depeap Accumulated dep clos Value 292 97 ear Dep.. Rate Book Value | (Beginnine 58,603 58,603 66.67% 87 goo 9765 78135 4,000 83 goo 29297 . ...... WN - 66.67%. I 19,532 159,03% 15765 9765

Requiomeu 4: cost Basis of Asset - Salvage Value = Estimated Total units Acheal units bep Produed - Pearl . 26,543 07.90- 4ow --------- X - 876 275w - 8100 24,712 A7 90 40 - Yee2 = 93 - X 28373 Year 3- 8790 - You ---- 9300 - 7 sou I / closing & Depeap Accemulated Book Value Yearl CBego) 61,357 26543 26,543 $87, goo 30645 1 51255 24712 61,357 28 373 | 79628 827 2 36045

Калийте г.. wou of Year 2 under shaish & line = 31,966 sale value = $2900 sale a $5966 Loss on Jounal enby: Year2 Dec 31 my $250w Pr 55,934 Pro986 Cash Al Accumulated dep Lossm sale of equipment To Equipment Afe c equipment so sed, 87,906 879 cro_you WIN Straight line dep = 2 27967 per year 879 w prouble declinny balance-a = 29,300 por Year Rate = 29300 Xiw = 33.337. 87.50 Double declinim Rate = 33.33%.x2 = 607),