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

question 176

Essay

Golden Sales has bought $135,000 in fixed assets on January 1 associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their four-year service life. Golden Sales managers want to evaluate the options of depreciation.​
(a) Compute the annual straight-line depreciation and provide the sample depreciation journal entry to be postedat 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-balancemethod.

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Definitions:

Normal Approximation

A statistical method that uses the normal distribution to approximate the distribution of sample data or a statistic.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, matched samples, or repeated measurements to assess differences in medians.

Triglyceride Levels

A measure of the amount of triglycerides, a type of fat, in the blood, which is an indicator of metabolic health.

SPSS Output

SPSS output refers to the results generated by the Statistical Package for the Social Sciences, a software used for statistical analysis.