This is from ACCT 280 - Accounting I

Long-Term Assets

The business that I chose for this is a T-Shirt sales business.

1. For your type of business, identify at least three long-term asset accounts for your company. Explain the purpose of each to your specific business as well as determine the appropriate useful life of each of these assets, and their salvage (residual) value if any.
2. For each of the long-term assets that you selected, determine and explain if the asset would be depreciated, depleted, or amortized. If depreciated, determine which method of depreciation would be used. Fully explain why you choose one method over the others.
3. For each of the selected long-term assets, present the journal entry that would be made to record the acquisition of the asset. Further present the journal entry that would be made to depreciate, deplete, or amortize the asset at years end (assume a calendar year). Lastly, compute and present the book value of each of the assets you selected after their first years depreciation, depletion, or amortization.