Question

You make adjusting journal entries for the month of December as needed. You carefully

consider the following:

-using the straight-line method to determine depreciation.

Computer and printer $3,250 (expected life of three years; $550 salvage value)

Camera, tripod, and lenses $2,970 (expected life of five years; $570 salvage value)

Editing software $ 240 (expected life of two years, no salvage value

Answer 1

Depreciation of C & P:

Depreciation expense = (Cost – SV) / Years

                                    = (3,250 – 550) / 3

                                    = 2,700 / 3

                                    = 900

Depreciation of Cam, T, and L:

Depreciation expense = (Cost – SV) / Years

                                    = (2,970 – 570) / 5

                                    = 2,400 / 5

                                    = 480

Depreciation of E & S:

Depreciation expense = (Cost – SV) / Years

                                    = (240 – 0) / 2

                                    = 240 / 2

                                    = 120

Total depreciation expense = 900 + 480 + 120

                                                = 1,500 (Answer)

Journal entries

Date	Account titles and explanation	Ref.	Debit	Credit
31st Dec	Depreciation expense		$900
	Accumulated depreciation – C & P			$900
	To record depreciation of C & P for the year.
31st Dec	Depreciation expense		$480
	Accumulated depreciation – Cam, T, & L			$480
	To record depreciation of Cam, T, & L for the year.
31st Dec	Depreciation expense		$120
	Accumulated depreciation – E & S			$120
	To record depreciation of E & S for the year.