McNeilley, Inc., uses the straight-line method to calculate depreciation expense. McNeilley uses two plant asset accounts, Office Equipment and Delivery Equipment.

Instructions:

Journalize the transactions. Use page 7 of a general journal and page 12 of a cash payments journal. Source documents are abbreviated as follows: check, C; memorandum, M; receipt, R.

Transcribed Image Text:

Transactions: Jan. 1, 20X1. Paid cash for new office word processor, plant asset no. 1, $600.00: estimated salvage value, $100.00; estimated useful life, eight years; serial no. T45M3409. C130. Mar. 1, 20X1. Paid cash for office desk, plant asset no. 2, $700.00: estimated salvage value, $150.00; estimated useful life, five years; serial no. D345. C190. June 30, 20X1. Paid cash for office chair, plant asset no. 3, $125.00: estimated salvage value, $10.00; estimated useful life, five years; no serial no. C200.