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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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

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