Question
Calculating and Journalizing Depreciation 1. Calculate the depreciation expense for Johnson Machine as of December 31, 20--. 2. Prepare the entry for depreciation expense using
Calculating and Journalizing Depreciation
1. Calculate the depreciation expense for Johnson Machine as of December 31, 20--.
2. Prepare the entry for depreciation expense using a general journal. If an amount box does not require an entry, leave it blank.
Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired.
eBook Print Item 1. Calculate the depreciation expense for Johnson Machine as of December 31, 20 2. Prepare the entry for depreciation expense using a general journal. If an amount box does not require an entry, leave it blank. Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the nth, depreciation should be computed for the entire month. In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in hich the asset was acquired. Purchase Price $20,000 24,000 18,000 14,000 40,000 Salvage Value Date Useful Life Asset Purchased Truck #1 Truck #2 Tractor #1 Tractor #2 Forklift 8 years 4,000 January1 4,000 April 10 3,000 May 1 2,000 June 18 4,000 September 1 10 Calculations 1. Calculate the depreciation expense for Johnson Machine as of December 31, 20-- 13,100 X Feedback Check My Work Cost-Salvage Value = Depreciable Cost Depreciable Cost / Years of Life = Depreciation Expense Be sure to adjust for the number of months used during the year. General Journal 2. Prepare the entry for depreciation expense using a general journal. If an amount box does not require an entry, leave it blank. Page: 1 DOC. POST. DBIT CREDIT NO. REF DATE ACCOUNT TITLE 1 20- Dec. 31 Depreciation Expense-Equipment 13,100X Cash x 13,100 X 2 Feedback Check My Work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started