Chapter 10, Problem 10.5AP

(a)

To determine

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Straight Line Method: Under the straight line method, the value of the asset left after deduction of the salvage value is depreciated by same amount throughout the life of the asset.

To record: Journal entries for given transactions and update the depreciation amount at the time of sale or disposal.

(b)

To determine

To Record: adjusting entries related to depreciation in 2018.

(c)

To determine

Prepare plant assets section of the balance sheet.