Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the...

Transcribed Image Text:

Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available: Appliance Cost Stoves $19,000 Residual Value $4,000 Refrigerators Dishwashers 14,000 12,000 3,000 2,000 Service Life (in Years) In 2024, three new refrigerators costing $2,900 were purchased for cash. In that same year, the old refrigerators, which originally cost $1,900, were sold for $400. Required: 1. Calculate the group depreciation rate, group life, and depreciation for 2021. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the group depreciation rate, group life, and depreciation for 2021. (Round "Group depreciation rate" and "Group life" answers to 2 decimal places.) Group depreciation rate Group life years Depreciation for 2021 (Straight Line) Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of new refrigerators. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record. No journal entry required Accounts payable Accounts receivable Accumulated depreciation Mausgeperal Journal Required 1 Required 2 Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the sale of old refrigerators. Note: Enter debits before credits. Event 2 General Journal Debit Credit Clear entry View general journal Record entry Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available: Appliance Cost Stoves $19,000 Residual Value $4,000 Refrigerators Dishwashers 14,000 12,000 3,000 2,000 Service Life (in Years) In 2024, three new refrigerators costing $2,900 were purchased for cash. In that same year, the old refrigerators, which originally cost $1,900, were sold for $400. Required: 1. Calculate the group depreciation rate, group life, and depreciation for 2021. 2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the group depreciation rate, group life, and depreciation for 2021. (Round "Group depreciation rate" and "Group life" answers to 2 decimal places.) Group depreciation rate Group life years Depreciation for 2021 (Straight Line) Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the purchase of new refrigerators. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record. No journal entry required Accounts payable Accounts receivable Accumulated depreciation Mausgeperal Journal Required 1 Required 2 Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the sale of old refrigerators. Note: Enter debits before credits. Event 2 General Journal Debit Credit Clear entry View general journal Record entry