College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 18, Problem 9SPA
CALCULATING AND JOURNALIZING
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.
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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
8 years
January 1
Truck #1
$20,000
$4,000
Truck #2
24,000
8
4,000
April 10
Tractor #1
18,000
3,000
Мay 1
Tractor #2
14,000
6
2,000
June 18
Forklift
40,000
10
4,000
September 1
Required:
1. Calculate the depreciation expense for Johnson Machine as of December 31, 20-
116,000 x
Feedback
2. Prepare the entry for depreciation expense using a general journal.
Page: 1
DOC. POST.
NO. REF.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
20--
Dec. 31
2
3
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
Calculate the Annual Depreciation for each listed asset.
Assume the assets were purchased on January 1st and used for 12 months.
The first asset has been completed.
Utilize the straight-line depreciation method: (Original cost - Estimated Salvage Value) / Estimated Useful Life = Annual Depreciation
Plant Asset
Cash register
Computer
Vehicle
Machinery
Desk
Asset
Original Cost
500.00
4,500.00
15,500.00
8,000.00
2,500.00
Calculate the amount to be depreciated:
Annual
Depreciation
Cash register
Computer
Vehicle
Machinery
Desk
Estimated
Salvage Value
25.00
800.00
3,000.00
1,200.00
200.00
67.86
Estimated
Useful Life
7 years
5 years
10 years
5 years
15 years
Questions? Contact your instructor!
Chapter 18 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 18 - Prob. 1TFCh. 18 - Prob. 2TFCh. 18 - Depreciation is a process of asset valuation; that...Ch. 18 - The straight-line method of depreciation allocates...Ch. 18 - Prob. 5TFCh. 18 - Prob. 1MCCh. 18 - Prob. 2MCCh. 18 - Prob. 3MCCh. 18 - Prob. 4MCCh. 18 - Prob. 5MC
Ch. 18 - The following costs were incurred to purchase a...Ch. 18 - Prob. 2CECh. 18 - Prob. 3CECh. 18 - Grandorf Company replaced the engine in a truck...Ch. 18 - Prepare journal entries for the following...Ch. 18 - Prob. 6CECh. 18 - Prob. 7CECh. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - What is meant by the depreciable cost of a plant...Ch. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQCh. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 1SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - UNITS-OF-PRODUCTION METHOD The truck purchased in...Ch. 18 - Prob. 4SEACh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mineral...Ch. 18 - INTANGIBLE LONG-TERM ASSETS Track Town Co. had the...Ch. 18 - Prob. 1SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - Prob. 3SEBCh. 18 - Prob. 4SEBCh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mining...Ch. 18 - Prob. 13SPBCh. 18 - Prob. 1MYWCh. 18 - Creative Solutions purchased a patent from Russell...Ch. 18 - On April 1, 20-3, Kwik Kopy Printing purchased a...Ch. 18 - Prob. 1CP
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