Willow Creek Company purchased and installed carpet in its new general offices o
ID: 2331896 • Letter: W
Question
Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $35,904. The carpet is estimated to have a 17-year useful life and no residual value. A. Prepare the journal entry necessary for recording the purchase of the new carpet. Refer to the Chart of Accounts for exact wording of account titles. B. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek Company uses the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.
Explanation / Answer
Answer:
Date
Account title
Debit $
Credit $
30-Apr
Carpet
35,904
Cash
35,904
( To record the purchase of carpet)
31-Dec
Depreciation expense - carpet (35904/17)*8/12
1408
Accumulated depreciation- carpet
1408
(To record the depreciation for the partial year)
Date
Account title
Debit $
Credit $
30-Apr
Carpet
35,904
Cash
35,904
( To record the purchase of carpet)
31-Dec
Depreciation expense - carpet (35904/17)*8/12
1408
Accumulated depreciation- carpet
1408
(To record the depreciation for the partial year)
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