Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $35,136. The carpet is estimated to have a 16-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.

CHART OF ACCOUNTS Willow Creek Company General Ledger REVENUE ASSETS 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Carpet 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable EXPENSES 116 Merchandise Inventory 117 Supplies 510 Cost of Merchandise Sold 520 Salaries Expense 119 Prepaid Insurance 120 Land 521 Advertising Expense 522 Depreciation Expense-Carpet 123 Carpet 523 Delivery Expense 124 Accumulated Depreciation-Carpet 524 Repairs and Maintenance Expense 125 Equipment 529 Selling Expenses 126 Accumulated Depreciation-Equipment 531 Rent Expense 130 Mineral Rights 532 Depreciation Expense-Equipment 131 Accumulated Depletion 533 Depletion Expense 132 Goodwill 534 Amortization Expense-Patents 133 Patents 535 Insurance Expense 536 Supplies Expense LIABILITIES 539 Miscellaneous Expense 210 Accounts Payable 710 Interest Expense 211 Salaries Payable 720 Loss on Sale of Carpet 213 Sales Tax Payable 721 Loss on Sale of Equipment 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Journal 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 PAGE1 JOURNAL ACCOUNTING EQUATION SSETS LIABILITIESEQUITY POST. REF DATE DEBIT CREDIT 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. Referto the Chart of Accounts for exact wording of account titles. PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Adjusting Entries