Question 2 [8 points]

At its December 31, 2014, year-end, Velor Inc. had a warehouse with an adjusted book value of $195,000 and an estimated remaining useful life of 14 years and residual value of $55,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 3, 2015, for $18,000 on account. The estimated useful life of the doo

Question 2 [8 points] At its December 31, 2014, year-end, Velor Inc. had a warehouse with an adjusted book value of $195,000 and an estimated remaining useful life of 14 years and residual value of $55,000. Because of pick-up and delivery issues at the warehouse, a contractor was hired to construct a new door into the east wall during the week of January 3, 2015, for $18,000 on account. The estimated useful life of the door is 20 years with an estimated residual value of $4,000. Velor Inc. uses the straight-line method to depreciate assets. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. a) Record the installation of the new door. General Journal Page Gj1 Date Account/Explanation F Debit Credit Effect On Balance Sheet + b) Record total depreciation on the warehouse at December 31, 2015. General Journal Page Gj1 Effect On Date Account/Explanation F Debit Credit Balance Sheet