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Veseljchak [2.6K]
1 year ago
8

prepare the journal entry to record double declining balance depreciation expense for the forklify for year 2

Business
1 answer:
Wittaler [7]1 year ago
5 0

Depreciation Expense  

Accumulated Depreciation

To record monthly depreciation

One of the two accelerated depreciation methods is the decreasing balance method, which has a depreciation rate that is roughly multiple the rate of the straight-line method. Instead of using the standard depreciation rate, the double-declining balance technique is a kind of declining balance method.

With this approach, the Book Value at the start of each period is multiplied by a set Depreciation Rate that is equal to a factor of 2, or 200% of the straight-line depreciation rate.

However, if the book value would drop below the salvage value, the last period can be changed so that it finishes at the salvage value. The salvage value is not taken into account in the double decreasing balance calculation when determining the depreciation of each period.

An asset for a firm will cost $1,750,000, have a life of 10, and have a salvage value of $10,000 after 10 years. To determine the depreciation expense for a given period, we multiply the book value at the commencement of the period by 200% of the straight-line depreciation, or a factor of 2.

The straight-line depreciation percent is 100% multiplied by ten years, or 10% annually.

Depreciation Rate: 2 times 10% each year equals 20%

Depreciation for a Period is equal to 20% of the Book Value at the commencement of the period. For Period 1, this equals $350,000.

Depreciation is calculated as 20% x ($1,750,000 - Accumulated Depreciation) for Periods 2 and upwards.

For Period 2, this equals $280,000.

To know more about depreciation, visit:

brainly.com/question/25530648

#SPJ4

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4 0
3 years ago
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Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000
11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

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6 0
3 years ago
First, find if a country's RGDP grows on average at 3% per year, how long will it take for this country to double its RGDP. If,
sasho [114]

Answer:

At the growth rate of 3% per year

Number of years taken to double the GDP = 23.33 years

The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

Explanation:

According to the rule of 70

Number of years taken to double the GDP = 70 ÷ [ Growth rate ]

Thus,

At the growth rate of 3% per year

Number of years taken to double the GDP = 70 ÷ 3

= 23.33 years

Further

if the growth rate is 3.5% per year

Number of years taken to double the GDP = 70 ÷ 3.5

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The the GDP will double ( 23.33 - 20 ) 3.33 years earlier at 3.5% growth rate

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If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers
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Answer:

C) breaks even.

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Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

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