Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimate year useful life and no residual value. a. Prepare the journal entries necessary for recording the purchase of the new carpet. If an amount box does not require an entry, leave it i Mar 31 CH b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses method. If an amount box does not require an entry, leave it blank Dec. 31

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.