This exercise continues our accounting for Sensations Salon, Inc., from previous chapters. In this exercise, we will account for the annual depreciation expense for Sensations Salon, Inc. In the Continuing Exercise in Chapter 2, we learned that Sensations Salon, Inc., had purchased styling chairs and professional clippers on May 3 and that they were expected to last three years.

Requirements

1. Calculate the annual depreciation expense amount for the equipment, assuming the assets are depreciated using straight-line depreciation.

2. Record the entry for the partial year’s depreciation for 2018. Date it December 31, 2018. Assume that no depreciation had been recorded yet in 2018.