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Suppose that on January 1 , Warnock Ltd . paid cash of $ 3 2 , 0 0 0 for computers that are expected to
Suppose that on January Warnock Ltd paid cash of $ for computers that are expected to remain useful for two years. At the end of two years, the computers' values are expected to be zero.
Required
Make journal entries to record a the purchase of the computers on January and b the annual depreciation on December Include dates and explanations, and use the following accounts: Computer Equipment; Accumulated DepreciationComputer Equipment; and Depreciation ExpenseComputer Equipment.
Post to the accounts and show their balances at December
What is the computers' carrying amount at December
Which accounts will Warnock report on the income statement for the year? Which accounts will appear on the balance sheet of December Show the amount to report for each item on both financial statements.
Requirement Make journal entries to record a the purchase of the computers on January and b the annual depreciation on December Include dates and explanations, and use the following accounts: Computer Equipment; Accumulated DepreciationComputer Equipment; and Depreciation ExpenseComputer Equipment.
a Record the purchase of the computer equipment. Record debits first, then credits. Enter explanations on the last line. Round your answers to the nearest dollar.
tableJournal EntryDateAccounts and Explanation,Debit,CreditJan
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