Question
Depreciation by Units-of-activity Method A diesel-powered tractor with a cost of $391,640 and estimated residual value of $5,800 is expected to have a useful operating
Depreciation by Units-of-activity Method
A diesel-powered tractor with a cost of $391,640 and estimated residual value of $5,800 is expected to have a useful operating life of 91,000 hours. During April, the tractor was operated 100 hours.
Determine the depreciation for the month. If required, carry out any division to two decimal places. $
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $35,904. The carpet is estimated to have a 17-year useful life and no residual value.
A. | Prepare the journal entry necessary for recording the purchase of the new carpet. Refer to the Chart of Accounts for exact wording of account titles. |
B. | Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. |
A. Prepare the journal entry necessary for recording the purchase of the new carpet. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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B. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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