Cost and Depreciation On January 1, 2019, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop paid $23,000 cash for the cooler. Quick Stop also paid $730 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $2,410 to have the old cooler dismantled and removed. Quick Stop also paid $820 to a contractor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of 6 years and a residual value of $200. Quick Stop uses the straight-line method of depreciation. 1. Prepare any necessary journal entries to record the cost of the cooler. Jan. 1 fill in the blank b1e8c7fa4fc3fac_2 fill in the blank b1e8c7fa4fc3fac_4 (Record purchase of equipment) 2. Prepare the adjusting entry to record 2019 depreciation expense on the new cooler. Dec. 31 fill in the blank b95aef08e003ff9_2 fill in the blank b95aef08e003ff9_4 (Record straight-line depreciation) 3. What is the book value of the cooler at the end of 2019? $fill in the blank 03199cfca044fd0_1
Cost and
On January 1, 2019, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop paid $23,000 cash for the cooler. Quick Stop also paid $730 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $2,410 to have the old cooler dismantled and removed. Quick Stop also paid $820 to a contractor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of 6 years and a residual value of $200. Quick Stop uses the straight-line method of depreciation.
1. Prepare any necessary
| Jan. 1 | fill in the blank b1e8c7fa4fc3fac_2 | ||
| fill in the blank b1e8c7fa4fc3fac_4 | |||
| (Record purchase of equipment) |
2. Prepare the
| Dec. 31 | fill in the blank b95aef08e003ff9_2 | ||
| fill in the blank b95aef08e003ff9_4 | |||
| (Record straight-line depreciation) |
3. What is the book value of the cooler at the end of 2019?
$fill in the blank 03199cfca044fd0_1
4. Conceptual Connection: If Quick Stop had used a useful life of 10 years and a residual value of $1,500, how would this effect depreciation expense for 2019 and the book value of the cooler at the end of 2019?
| Depreciation expense for 2019 | $fill in the blank 03199cfca044fd0_2 |
| Book value of the cooler at the end of 2019 | $fill in the blank 03199cfca044fd0_3 |
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