This exercise continues our accounting for Graham’s Yard Care Inc. from previous chapters. In this exercise, we will account for the annual depreciation expense for Graham’s Yard Care, Inc. In the Continuing Exercise in Chapter 2 we learned that Graham’s Yard Care, Inc. had purchased a lawn mower and a weed whacker on June 3 and that they were expected to last four years.
1. Calculate the annual depreciation expense amount for each asset assuming both assets are using straight-line depreciation for both assets
2. Record the entry for the partial year’s depreciation for 2014. Date it December 31, 2014. Assume that no depreciation has been recorded yet in 2014.