Prepare December 31 journal entries to record depreciation expense for the year. 

Double declining balance depreciation is used for equipment and straight-line depreciation for building and parking lot.

 Information

1.He bought a plot of land with a building for $900,000 in cash. The estimated useful life of the building, which will be used in businesses, is 25 years, and its scrap value is $60,000. Valuations assessed for property tax purposes show the land at $80,000 and the building at $720,000. 

2.Paid $30,000 to build an asphalt parking lot for 2 clients. The parking lot is expected to last 12 years and has no salvage value. 

3. Paid $25,000 for a new entry to Building.

4 Store equipment purchased with cash payment of $74,900 billing (including seven percent sales tax). The equipment has an estimated useful life of eight years and a salvage value of $6,000. 

5 Paid $220 freight for new equipment. 

6 Payed $1,500 to repair damage to the floor when the shop equipment was accidentally dropped in transit.

7 Paid $40 for an umbrella holder to place on the front door (customers can put wet umbrellas in the holder). The owner is expected to last 20 years.

Answer rating: 100% (QA)

To record depreciation expense for the year ending December 31 we need to calculate depreciation for each of the assets based on their respective depr... View the full answer