College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Textbook Question
Chapter 18, Problem 9SPB
CALCULATING AND JOURNALIZING
REQUIRED
- 1. Calculate the depreciation expense for Byerly Construction as of December 31, 20--.
- 2. Prepare the entry for depreciation expense using a general journal.
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Calculate the Annual Depreciation for each listed asset.
Assume the assets were purchased on January 1st and used for 12 months.
The first asset has been completed.
Utilize the straight-line depreciation method: (Original cost - Estimated Salvage Value) / Estimated Useful Life = Annual Depreciation
Plant Asset
Cash register
Computer
Vehicle
Machinery
Desk
Asset
Original Cost
500.00
4,500.00
15,500.00
8,000.00
2,500.00
Calculate the amount to be depreciated:
Annual
Depreciation
Cash register
Computer
Vehicle
Machinery
Desk
Estimated
Salvage Value
25.00
800.00
3,000.00
1,200.00
200.00
67.86
Estimated
Useful Life
7 years
5 years
10 years
5 years
15 years
Questions? Contact your instructor!
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the
following information:
(a) accrued salaries at year-end total $1,000.
(b) for simplicity, the building and equipment are being depreciated using the straight-
line method over an estimated life of 20 years with no residual value.
(c) supplies on hand at the end of the year total $600.
(d) bad debts expense for the year totals $610; and
(e) the income tax rate is 30%; income taxes are payable in the first quarter of 2017.
Calculating and Journalizing Depreciation
Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month.
In the case of assets acquired after the fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired.
Purchase
Salvage
Date
Asset
Price
Useful Life
Value
Purchased
Truck #1
$19,050
8 years
$3,930
January 1
Truck #2
24,320
8
4,000
April 10
Tractor #1
18,010
5
3,010
May 1
Tractor #2
13,200
6
2,100
June 18
Forklift
38,410
10
3,910
September 1
Required:
1. Calculate the depreciation expense for Johnson Machine as of December 31, 20--.
2. Prepare the entry for depreciation expense using a general journal.
Page: 1
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT CREDIT
NO. REF.
20--
1
Dec. 31
1
2
2
Chapter 18 Solutions
College Accounting, Chapters 1-27
Ch. 18 - Prob. 1TFCh. 18 - Prob. 2TFCh. 18 - Depreciation is a process of asset valuation; that...Ch. 18 - The straight-line method of depreciation allocates...Ch. 18 - Prob. 5TFCh. 18 - Prob. 1MCCh. 18 - Prob. 2MCCh. 18 - Prob. 3MCCh. 18 - Prob. 4MCCh. 18 - Prob. 5MC
Ch. 18 - The following costs were incurred to purchase a...Ch. 18 - Prob. 2CECh. 18 - A machine costing 350,000 has a salvage value of...Ch. 18 - Grandorf Company replaced the engine in a truck...Ch. 18 - Prepare journal entries for the following...Ch. 18 - Prob. 6CECh. 18 - Prob. 7CECh. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - What is meant by the depreciable cost of a plant...Ch. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - For assets acquired after 1986, but before...Ch. 18 - Prob. 9RQCh. 18 - Prob. 10RQCh. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 23RQCh. 18 - Prob. 1SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - UNITS-OF-PRODUCTION METHOD The truck purchased in...Ch. 18 - Prob. 4SEACh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mineral...Ch. 18 - INTANGIBLE LONG-TERM ASSETS Track Town Co. had the...Ch. 18 - Prob. 1SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - Prob. 3SEBCh. 18 - Prob. 4SEBCh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mining...Ch. 18 - Prob. 13SPBCh. 18 - Prob. 1MYWCh. 18 - Creative Solutions purchased a patent from Russell...Ch. 18 - On April 1, 20-3, Kwik Kopy Printing purchased a...Ch. 18 - Prob. 1CP
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