Suppose that on January 1 Georgetown Golf Company paid cash of $80,000 for computers that are expected

Question:

Suppose that on January 1 Georgetown Golf Company paid cash of $80,000 for computers that are expected to remain useful for four years. At the end of four years, the computers values are expected to be zero.

1. Make journal entries to record

(a) Purchase of the computers on January 1

(b) Annual depreciation on December 31. Include dates and explanations, and use the following accounts: Computer Equipment; Accumulated Depreciation––Computer Equipment; and Depreciation Expense––Computer Equipment.

2. Post to the accounts and show their balances at December 31.

3. What is the computer equipments book value at December 31?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

Question Posted: