Post the following journal entry: Depreciation expense must be recorded for the month of December. The...

Post the following journal entry: Depreciation expense must be recorded for the month of December.
The building was purchased with cash on February 1, 2014 for $150,000 with a remaining useful life of 30 years and a salvage value of $6,000.
	The method of depreciation for the building is straight-line.
The equipment was purchased with cash on February 1, 2014 for $60,000 with a remaining useful life of 5 years and a salvage value of $3,000.
	The method of depreciation for the equipment is double-declining balance.
Depreciation has been recorded for the building and equipment for months February through November.

Expert Solution

All working forms part of the answer
Workings

---Building

A	Cost	$ 150,000.00
B	Residual Value	$ 6,000.00
C=A - B	Depreciable base	$ 144,000.00
D	Life [in years]	30
E=C/D	Annual SLM depreciation	$ 4,800.00

One month depreciation = 4800 x 1/12 = $ 400

---Equipment

A	Cost	$ 60,000.00
B	Residual Value	$ 3,000.00
C=A - B	Depreciable base	$ 57,000.00
D	Life [in years]	5
E=C/D	Annual SLM depreciation	$ 11,400.00
F=E/C	SLM Rate	20.00%
G=F x 2	DDB Rate	40.00%

1^st year depreciation = 60000 x 40% = $ 24,000

Depreciation expense for December = 24000 x 1/12 = $ 2,000

Answer: Journal Entry

--Depreciation on Building for December

Date	Accounts title	Debit	Credit
31-Dec	Depreciation Expense - Building	$ 400.00
	Accumulated Depreciation - Building		$ 400.00

--Depreciation on Equipment for December

Date	Accounts title	Debit	Credit
31-Dec	Depreciation Expense - Equipment	$ 2,000.00
	Accumulated Depreciation - Equipment		$ 2,000.00

ekkarill92 answered 2 years ago

Major Journal Entries – Test 03 Depreciation Expense Entry Patent Purchase Entry Amortization Expense Entry PP&E...

Major Journal Entries – Test 03 Depreciation Expense Entry Patent Purchase Entry Amortization Expense Entry PP&E Gain Entry PP&E Loss Entry PP&E Sold between Depreciation Dates (at a Gain) Step 1: Step 2: Short-Term Equity Purchase (Asset Issue) Short-Term Equity (Increase in the Year-End Value, Not Sold) Impairment Entry Bob Corporation needs your help with the double-declining-balance method of depreciation. Given the below information you should calculate the below two numbers. Invoice Price (Equipment Purchased) => 90,000 Setup Charges (Equipment...

Adjusting entries: Depreciation expense must be recorded for the year. A count of the supplies inventory...

Adjusting entries: Depreciation expense must be recorded for the year. A count of the supplies inventory indicates that there are $500 in supplies remaining. An inventory count indicates that there are 16,500 units of merchandise inventory in usable condition. Prepaid rent should be adjusted to the correct balance at Dec 31. Prepaid insurance should be adjusted to the correct balance at Dec 31. Prepaid Security Services should be adjusted You receive the phone and water bills but will not pay...

How would the following transaction be recorded as a journal entry? Would it even be recorded?...

How would the following transaction be recorded as a journal entry? Would it even be recorded? Accurred expenses are recorded when they occur, but how does the fact that he hasn't written the reimbursement check affect the recording process? "JS had been using a personal cell phone during January for business activities. JS’s accountant had indicated that this was an allowable expense for the business, so JS planned to write a reimbursement cheque (to himself) for $95 but hadn’t gotten...

Prepare the journal entry to record the payment of interest expense on December 31, 2017.

Question: (Fair Value Hedge) Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable $1,000,000 note payable on December 31, 2016. It changes the interest rate from a fixed to variable rate and enters into a swap agreement with M&S Corp. The swap agreement specifies that Sarazan will receive a fixed rate at 7.5% and pay variable with settlement dates that match the interest payments on the debt. Assume that interest rates have declined during 2017 and that Sarazan...

15) Which of the following statements is correct regarding depreciation? A. Depreciation expense should be recorded...

15) Which of the following statements is correct regarding depreciation? A. Depreciation expense should be recorded in the appropriate governmental funds and recorded in the governmental activities accounts. B. Depreciation expense must be recorded in the governmental fund, but no depreciation expense is recorded in the governmental activities accounts. C. No depreciation can be recorded in any governmental fund, but depreciation expense must be recorded in the governmental activities accounts. D. No depreciation can be recorded in any governmental fund,...

How much depreciation expense will be recorded for the van during the first year ended December 31

A company purchased a new delivery van at a cost of $62,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a salvage value of $5,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31 (a) $6,200 (b) $5,700 (c) $6,000 (d) $11,400 (e) $6,700

A company records an entry to record $15,000 depreciation expense. Which of the following describes the...

A company records an entry to record $15,000 depreciation expense. Which of the following describes the entry? One Answer A. Increase Property Plant and Equipment and increase Depreciation expense B. Increase Depreciation expense and Increase Accumulated Depreciation- Property Plant and Equipment C. Increase Property Plant and Equipment and Decrease Cash D. Increase Depreciation expense and Decrease Cash

An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation....

An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation. (T/F) ABC Co. provides contracting services to XYZ Co. XYZ paid ABC in advance (down payment). This would be deferred revenue for ABC. Co (T/F) To record depreciation for the month you would (A. dr. Accumulated Depreciation and cr. Depreciation Expenses) (B. dr. Depreciation Expenses and cr. Accumulated Depreciation) (C. dr. Depreciation Expense and cr. Cash) (D. none of these are correct) Adjusting entries...

In Principles of Accounting I, we learned the journal entry for depreciation is: Debit – Depreciation...

In Principles of Accounting I, we learned the journal entry for depreciation is: Debit – Depreciation Expense $X,XXX Credit – Accumulated Depreciation - (asset) $X,XXX 1) How is depreciation recorded differently under job order costing and how would you explain the difference to a non-accountant? 2) Suppose you had to record depreciation of $700 on factory equipment and $225 on office equipment. What would the journal entry look like?

1. The following journal entry was recorded by Epic Inc: Work in Process $94,000 Raw...

1. The following journal entry was recorded by Epic Inc: Work in Process $94,000 Raw Materials $94,000 Which of the following statements is correct regarding this journal entry? Multiple Choice This journal entry shows that $94,000 of raw materials were purchased during the period. This journal entry shows that $94,000 of products were sold. This journal entry shows that $94,000 of direct materials were called into the production process. This journal entry shows that $94,000 in products were completed...

Question