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Question -
Bought a piece of equipment for $40,000 dollars on January 1st Salvage value was $7,000 and useful life was 6 years. Estimated output was 120,000 units. 2009 output was 30,000 and 2010 output was 20,000.
1) Make adjusting entries for 2009 and 2010 for Straight-line, Units of Production, Double declining and sum of the years.
2) Make the adjusting entries for 2009 and 2010 for straight line, units of production, double declining and sum of the years if the equipment was bought on May 1st.
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