Calculating and journalizing partial-year depreciationThis problem continues the Canyon Canoe Company situation from Chapter 8, Amber and Zack Wilson are continuing to review business practices. Currently, they are reviewing the company’s property, plant, and equipment and have gathered the following information:RequirementsCalculate the amount of monthly depreciation expense for the computer and office furniture for 2019.For each asset, determine the book value as of December 31, 2018. Then, calculate the depreciation expense for the first six months of 2019 and the book value as of June 30, 2019.Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2019. MonthlyEstimated Residual Depreciation DepreciationEstimatedAcquisitionAssetDateCostLifeValueMethod*ExpenseCanoesNov. 3, 2018 $ 4,800 4 yearsSL$ 100LandDec. 1, 2018 85,000n/aBuildingDec. 1, 201835,0005 years5,000SL500CanoesDec. 2, 20187,200 4 yearsSL150ComputerMar. 2, 20193,6003 years300DDBOffice Furniture Mar. 3, 20193,000 5 years600SL*SL = Straight-line; DDB = Double-declining-balance

1) Calculation of monthly depreciation expense for the computer and office furniture for 2019:…

Answered: Monthly Estimated Residual Depreciation…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

See similar textbooks

Related questions

Question

Calculating and journalizing partial-year depreciation

This problem continues the Canyon Canoe Company situation from Chapter 8, Amber and Zack Wilson are continuing to review business practices. Currently, they are reviewing the company’s property, plant, and equipment and have gathered the following information:

Requirements

Calculate the amount of monthly depreciation expense for the computer and office furniture for 2019.
For each asset, determine the book value as of December 31, 2018. Then, calculate the depreciation expense for the first six months of 2019 and the book value as of June 30, 2019.
Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2019.

Monthly
Estimated Residual Depreciation Depreciation
Estimated
Acquisition
Asset
Date
Cost
Life
Value
Method*
Expense
Canoes
Nov. 3, 2018 $ 4,800 4 years
SL
$ 100
Land
Dec. 1, 2018 85,000
n/a
Building
Dec. 1, 2018
35,000
5 years
5,000
SL
500
Canoes
Dec. 2, 2018
7,200 4 years
SL
150
Computer
Mar. 2, 2019
3,600
3 years
300
DDB
Office Furniture Mar. 3, 2019
3,000 5 years
600
SL
*SL = Straight-line; DDB = Double-declining-balance

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions