Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

تمرين 24

Capital expenditure and depreciation; parital-year depreciation
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.
a. Prepare the journal entry necessary for recording the purchase of the new carpet.
b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method.