Question

FULL SCREEN PRINTER VERSION 4 BACK Jake's Mechanics owns the following long-lived assets: Asset Date Purchased Cost Estimated Useful Life Building January 1, 2014 $54,400 20 years Vehicles December 31, 2017 35,500 10 years Equipment July 1, 2016 11,680 3 years Prepare depreciation adjusting entries for Jake's Mechanics for the year ended December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 (To record depreciation expense for building) Dec. 31 To record depreciation expense for vehicles.) To record depreciation expense for equipment.)

Answer 1

Ans:

Building : $54,400

Purchase date : January 1, 2014

Life : 20 Years

Annual Depreciation : $54,400 / 20 = $2,720

Depreciation till December 31, 2021

= $2,720 * 8 = $21,760

Vehicle : $35,500

Purchase date : December 31, 2017

Life : 10 Years

Annual Depreciation : $35,500 / 10 = $3,550

Depreciation till December 31, 2021

= $3,550 * 4 = $14,200

Equipment : $11,680

Purchase date : July 1, 2016

Life : 8 Years

Annual Depreciation : $11,680 / 8 = $1,460

Depreciation till December 31, 2021

= $1,460 * 5.5 = $8,030

Required Journal Entry :

Date	Particulars	Debit	Credit
Dec. 31	Depreciation Expense	$2,720
	Building / Accumulated Depreciation		$2,720
	(To record the depreciation expense for building)
Dec. 31	Depreciation Expense	$3,550
	Vehicle / Accumulated Depreciation		$3,550
	(To record the depreciation expense for Vehicle)
Dec. 31	Depreciation Expense	$1,460
	Equipment / / Accumulated Depreciation		$1,460
	(To record the depreciation expense for Equipment)

2.

Required Table :

	Building	Vehichle	Equipment
Cost	$54,400	$35,500	$11,680
Accumulated Depreciation	$21,760	$14,200	$8,030
Carrying Value	$32,640	$21,300	$3,650

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