ACCT 201 Chapter 3 Practice Problems 2 1. On June 1, 2015. Total Sports Inc. acquired a building for SSGO.000. The estimated useful le of the asset is 12 years. Residual or salvage value at the end of 12 years is estimated to be $400,000. Total Sport Inc, records depreciation once per year on Dec. 31. Using straight line method 1. Calculate the depreciation expense per year 2. Calculate the depreciation expense per month 3. Make the journal entry to record depreciation expense for 2015 Date Account Debit Credit 4. Make the journal entry to record depreciation for 2016 Date Account Debit Credit 5. Calculate the balance in Accumulated Depreciation after 3 years 6. Calculate the book value after 3 years Act 201 Chapter Yamont alle A Cash decreases and B Cash increases and C Cash decreases and Cash increases and c vidend increase ends decrease on c e 2. Following are transactions of Gotabe Tanner during the month of January 1. Issued 10.000 shares of common stock for $15.000 cash 2. Purchased land for $12,000, signing a note payable for the full amount 3. Purchased office equipment for $1.200 cash 4. Received cash of $14,000 for services provided to customers during the month 5. Purchased $300 of office supplies on account 6. Paid employees $10,000 for their first month's salaries What was the balance of Gotebo's Cash account following these six transactions? A. $29.800 B. $19,300 C. $17.800. D. $22.400 3. Clement Company paid an account payable related to a previous utility bill of $1.000. This transaction should be recorded as follows on the payment date: Date Account Debit Credit