Golden Sales Has Bought $135,000 in Fixed Assets on January

question 124

Essay

Golden Sales has bought $135,000 in fixed assets on January 1st associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their 4-year service life. Golden Sales managers want to evaluate the options of depreciation.
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(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be posted
at the end of each of the years.
(b) Write the journal entries for each year of the service life for these assets using the double-declining balance
method.

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Definitions:

Bicarbonate Ion

A negatively charged ion (HCO3-) that is a significant component of the bicarbonate buffering system in the blood.

Hemolysis

Destruction of red blood cells in such a manner that hemoglobin is released.

Erythrocyte

Red blood cell; biconcave disk containing hemoglobin.

Reticulocyte

Young red blood cell with a network of basophilic endoplasmic reticulum occurring in larger numbers during the process of active red blood cell synthesis.