Instructions Caloulations General Joumal Calculating and Journalizing Depreclati

Question

Instructions Caloulations General Joumal Calculating and Journalizing Depreclation Calculate the depreciation expense for Johnson Machine as of December 31, 20 Prepare the entry for depreciation expense using a general journal. If an amount box does not require an entry, leave it blank. Equipment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of ssets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after e fifteenth day of the month, no depreciation should be considered for the month in which the asset was acquired. Salvage Value Date Purchase Price $20,070 22,360 16,660 12,960 40,130 Purchased Useful Lufe 8 years 8 Asset Truck #1 Truck #2 Tractor #1 Tractor #2 Forklift $4,150 January1 4,120 April 10 3,160 May 1 2,100 June 18 10 3,830 September1

Explanation / Answer

Assets Purchase price Useful Life Salvage Vvalue Depreciable Amt Annual Depreciation No. of Mths Dep Depreciation Expense Truck#1 20070 8 4150 15920 1990 12 months 1990 Truck#2 22360 8 4120 18240 2280 9 months 1710 Tractor#1 16660 5 3160 13500 2700 8 months 1800 Tractor#2 12960 6 2100 10860 1810 6 months 905 Forklift 40130 10 3830 36300 3630 4 months 908 Depreciation expensne 7313 Depreciation expense for the Year Dec 31 :   $ 7313 Journal Entry: 31-Dec Depreciation expense-Truck Equipment Dr. 3700        Accumulated Depreciation-Truck Equipment 3700 31-Dec Depreciation Expense-Tractor Equipment 2705       Accumulated Depreciation-Tractor Equipment 2705 31-Dec Depreciation Expense - Forklift Equipment 908       Accumulated Depreciation-Forkilft Equipment 908

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