This exercise continues our accounting for Lydon’s Yard Care, Inc., from previous chapters. In this exercise, we will account for the annual depreciation expense for Lydon’s Yard Care, Inc. Inthe Continuing Exercise in Chapter 2 we learned that Lydon’s Yard Care, Inc., had purchased alawn mower and a weed whacker on April 3 and that they were expected to last four years.
1. Calculate the annual depreciation expense amount for each asset assuming both assets are depreciated using straight-line depreciation.
2. Record the entry for the partial year’s depreciation for 2012. Date it December 31, 2012. Assume that no depreciation has been recorded yet in 2012.