On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life with a residual value of $16,000. Harding uses straight-line depreciation.Required:(a)Calculate the depreciation expense and provide the journal entry for the first year ending December 31.*(b)Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31.*(c)Calculate the last year’s depreciation expense and provide the journal entry for the last year.* *Refer to the Chart of Accounts for exact wording of account titles.CHART OF ACCOUNTSHarding ConstructionGeneral Ledger ASSETS110Cash111Petty Cash112Accounts Receivable114Interest Receivable115Notes Receivable116Merchandise Inventory117Supplies119Prepaid Insurance120Land121Equipment122Accumulated Depreciation132Goodwill133Patents LIABILITIES210Accounts Payable211Salaries Payable213Sales Tax Payable214Interest Payable215Notes Payable EQUITY310Owner, Capital311Owner, Drawing312Income Summary REVENUE410Sales610Interest Revenue EXPENSES510Cost of Merchandise Sold520Salaries Expense521Advertising Expense522Supplies Expense523Delivery Expense524Rent Expense525Insurance Expense531Repairs and Maintenance Expense541Depreciation Expense544Amortization Expense-Patents591Miscellaneous Expense710Interest Expense Calculate the depreciation expense and provide the journal entry for the first year ending December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2 Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2 Calculate the last year’s depreciation expense and provide the journal entry on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2 Calculate the depreciation expense and provide the journal entry for the first year ending December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2 Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2 Calculate the last year’s depreciation expense and provide the journal entry on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATEDESCRIPTIONPOST. REF.DEBITCREDIT1 2

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Description: On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life with a residual value of $16,000. Harding uses straight-line depreciation.Required:(a)Calculate the depreciation expense and provide the journal entry

Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called…

Answered: On July 1, Harding Construction…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8-year life with a residual value of $16,000. Harding uses straight-line depreciation.

Required:

(a)	Calculate the depreciation expense and provide the journal entry for the first year ending December 31.*
(b)	Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31.*
(c)	Calculate the last year’s depreciation expense and provide the journal entry for the last year.*
	*Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Harding Construction

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
114	Interest Receivable
115	Notes Receivable
116	Merchandise Inventory
117	Supplies
119	Prepaid Insurance
120	Land
121	Equipment
122	Accumulated Depreciation
132	Goodwill
133	Patents

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Supplies Expense
523	Delivery Expense
524	Rent Expense
525	Insurance Expense
531	Repairs and Maintenance Expense
541	Depreciation Expense
544	Amortization Expense-Patents
591	Miscellaneous Expense
710	Interest Expense

Calculate the depreciation expense and provide the journal entry for the first year ending December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Calculate the last year’s depreciation expense and provide the journal entry on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Calculate the depreciation expense and provide the journal entry for the first year ending December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Calculate the third year’s depreciation expense and provide the journal entry for the third year ending December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Calculate the last year’s depreciation expense and provide the journal entry on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

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