Answer Happy

Excel Assignment 1_DEPRECIATION Double-declining-balance Methods LEARNING OBJECTIVES Compute depreciation using the double-declining-balance methods using formulas or the Excel functions =DDB. Identify patterns of depreciation over an asset's life. Interpret patterns of accumulated depreciation over an asset's life. Alter the worksheet to allow for the computation of partial year depreciation. Create a chart plotting annual depreciation under all three depreciation methods. . . PROBLEM DATA Guardade Company purchased a new machine for $400,000. It is estimated that the machine will have a $40,000 residual value at the end of its S-year useful service life. The double-declining balance method of depreciation will be used. You are to use the worksheet to prepare depreciation schedules for the new machine. Prepare a depreciation schedule which shows the annual depreciation expense on the machine for its 5-year life." REQUIRED 1. In the spreadsheet (double decline), key in the cost of asset, estimated salvage value, and the estimated useful life in years. Fill in the formulas (FORMULA1 FORMULA15) requested in the depreciation schedule (Using the DDB function). Be sure to use cell references wherever possible in your formulas instead of numbers. You should find the year numbers in column B helpful for some formulas 2. In the space below, prepare the journal entry to record the depreciation taken in Year S under double-declining-balance method. GRAPHICAL ANALYSIS 3. In the spreadsheet (Compare), key in the formulas for annual depreciation expenses under double-declining-balance method (FORMULAG-FORMULA 10). (Hint: Use DDB function). 4. Key in the formulas for annual depreciation expenses under straight-line method. (Hint: Use SLN function), 5. Use the depreciation schedule you just created. With year as the x-axis and annual depreciation expense as the y-axis, plot a line chart that shows annual depreciation expenses under the two depreciation methods. Copy your graph in the space below.
А B D E F G DEPREC Depreciation Data Section 4 Cost of Asset SO 5 Estimated Salvage Value $0 6 Estimated Usefel Life in Years 0 7 Answer Section 8 Depreciation Schedule (Double-Declining-Balance Method) 9 End of Year 10 Year Book Value Beginning of Year Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Book Value End of Year 11 1 FORMULAI 12 2 FORMULA2 13 3 FORMULA 14 4 FORMULA 15 5 FORMULAS 16 Total $0 17 18 19 20 Joumal Entry 21 22 25 24 25 DOSSA De Compare +