January 1, 2020 : Purchased a car in cash, $ 50,000. The estimated useful life of the
Question:
January 1, 2020: Purchased a car in cash, $ 50,000. The estimated useful life of the car is 5 years. The residual value at the end of the useful life is expected as zero. Company decided to use the double-declining balance method of depreciation for the car.
October 1, 2020: Purchased office furniture in cash, $ 13,000. The estimated useful life of the office furniture is 4 years. The residual value at the end of the useful life is expected as $ 1,000. Company decided to use the straight-line depreciation method for the office furniture.
December 31, 2020: Teta Company prepares the necessary journal entries related to fixed assets.
December 31, 2020: Teta Company prepares the necessary journal entries related to fixed assets.
Required:
Prepare the entries (only ledger (T-Accounts)) and calculate the depreciation expense of fixed assets for 2020 and 2021
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson