Calculating and Journalizing DepreciationEquipment records for Johnson Machine Co. for the year follow. Johnson Machineuses the straight-line method of depreciation. In the case of assets acquired by thefifteenth 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 depreciationshould be considered for the month in which the asset was acquired.PurchaseSalvageDateAssetPriceUseful LifeValuePurchased8 yearsJanuary 1Truck #1$20,000$4,000Truck #224,00084,000April 10Tractor #118,0003,000Мay 1Tractor #214,00062,000June 18Forklift40,000104,000September 1Required:1. Calculate the depreciation expense for Johnson Machine as of December 31, 20-116,000 xFeedback2. Prepare the entry for depreciation expense using a general journal.Page: 1DOC. POST.NO. REF.DATEACCOUNT TITLEDEBITCREDIT20--Dec. 3123

GIVEN Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the…

Purchase Salvage Date Asset Price Useful Life Value Purchased Truck #1 $20,000 8 years $4,000 January 1 Truck #2 24,000 4,000 April 10 Tractor 1 18,000 5 3,000 May 1 Tractor #2 14,000 2,000 June 18 Forklift 40,000 10 4,000 September 1

Purchase Salvage Date Asset Price Useful Life Value Purchased Truck #1 $20,000 8 years $4,000 January 1 Truck #2 24,000 4,000 April 10 Tractor 1 18,000 5 3,000 May 1 Tractor #2 14,000 2,000 June 18 Forklift 40,000 10 4,000 September 1

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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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
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Using the following information, Make the December 31 adjusting journal entry for depreciation. Determine the net book value (NBV) of the asset on December 31. Cost of asset, $195,000 Accumulated depreciation, beginning of year, $26,000 Current year depreciation, $13,000