(2) Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $36,288. 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. |
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.
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
Adjusting Entries |
|||||||
2 |
Dec 31. |
Depreciation Expense-Carpet |
$ (amount needed) | |||||
3 |
Accumulated Depreciation-Carpet |
$ (amount needed) |
a) Journal entries
Date | Description | Post ref | Debit | credit | Assets | Liabilities | Equity | |
1 | Apr 30 | Carpet | 36288 | 36288 | ||||
Cash | 36288 | -36288 | ||||||
b) Adjusting entries
Date | Description | Post ref | Debit | credit | Assets | Liabilities | Equity | |
1 | Dec 31 | Depreciation expense (36288/16)*8/12 | 1512 | -1512 | ||||
Accumulated depreciation-Carpet | 1512 | -1512 | ||||||
(2) Willow Creek Company purchased and installed carpet in its new general offices on April 30...
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