Chapter 3
Long-Term Assets
118
b) Record the journal entry for the sale, assuming that the depreciation for 2016 has already
been recorded.
Date
Account Title and Explanation
Debit
Credit
AP-5B (
3
4
)
Equipment was purchased on January 1, 2016 for $86,000. The asset is expected to last for
four years, at which time the estimated residual value will be $7,000.
Required
a) Fill in the following table, assuming the company uses straight‐line depreciation.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
DepreciationTo
Date
Net Book Value
b) Fill in the following table, assuming that the company uses the units‐of-production
method and that the estimated residual value will be $7,000. The asset is expected to
produce a total of 1,010,000 units over four years. The number of units that the asset is
expected to produce for each year is: year 2016—202,000 units; year 2017—252,500 units;
year 2018—303,000 units; year 2019—252,500 units.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
DepreciationTo
Date
Net Book Value
