Required: Compute Depreciation for 2016 and 2017 and the Book Value

question 29

Essay

Required:
Compute depreciation for 2016 and 2017 and the book value of the drill press at December 31,2016 and 2017,assuming the units-of-production method is used.

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Definitions:

Credits

Entries that increase liabilities or equity on the balance sheet or reduce assets.

Ledger

A book or digital record holding all the accounts of a company, showing the changes made to each account and the current balance.

Journal

A chronological record of all business transactions, used to transfer information to the general ledger.

Prepaid Insurance

Expenses paid in advance for insurance coverages that extend beyond the current accounting period.