ACC321 Term Project: Part 2 - PP&E PP&E Part 2: Year-end Adjusting Entries Step 1: Asset Depreciation Useful life Method years Original Cost Full year of Number of months this Pro-rating Partial Year Compute Depreciation depreciation year factor Depreciation Building - Dallas, Texas Straight-line 0.0096 Building - Denver, Colorado Straight-line 0.009% Furniture & Fixtures - Denver, Colorado Straight-line 0.0096 Machinery & Equipment - Houston, Texas Straight-line 0 Step 2: Prepaid Expense Number of Compute Portion of Original Cost year months this Amount to Prepaid to Expense Pro-rating factor Expense Prepaid Taxes 0.0096 Prepaid Insurance D.0096 Step 3: Make Journal Entries JE # Date Debit Credit AJ#1 12/31/2016 Depreciation Expense - Building - Dallas, TX Insurance Expense Prepaid Expense (Insurance) Accumulated Depreciation - Building - Dallas, TX Notes: AJ#2 12/31/2016 Depreciation Expense - Building - Denver, CO Property Tax Expense Prepaid Expense (Property Tax ) Accumulated Depreciation - Building - Denver, CO Notes: AJ#3 12/31/2016 Depreciation Expense - Furniture & Fixtures - Denver Accumulated Depreciation - Furniture & Fixtures - Denver, CO Notes AJ# 4 12/31/2016 Depreciation Expense - Machinery & Equip - Houston, TX Accumulated Depreciation - Machinery & Equip - Houston, TX Notes