P10-42 Calculating and journalizing partial year depreciation This problem continues the Davis Consulting situation from Problem P9-41 of Chapter 9. Assume Davis Consulting had purchased a computer, $1,800, and office furniture, $4,200, on December 3 and 4, 2014, respectively, and that they were expected to last five years. Assume that both assets have a residual value of $0. Requirements 1. Calculate the amount of depreciation expense for each asset for the year ended December 31, 2014, assuming the computer is depreciated using the straightline method and the office furniture is depreciated using the double-decliningbalance method. 2. Record the entry for the one month?s depreciation.

Depreciation on computer Straight-line depreciation = = = (Cost Residual value) / Useful life (Number of Months / 12) = = = (Cost - Accumulated depreciation) 2 (1 / Useful life) x 1/12 Depreciation on office furniture The 1/12 is b/c it is 1 months worth of depreciation Double-declining-balance depreciation Date Dec. 31 Accounts and Explanation Dec. 31 Available Accounts for journal entries: Depreciation ExpenseComputer Accumulated DepreciationComputer Depreciation ExpenseOffice Furniture Accumulated DepreciationOffice Furniture Debit Credit