Calculating and 1.Calculate the depreciation expense for Johnson Machine as of D

Question

Calculating and 1.Calculate the depreciation expense for Johnson Machine as of December 31, 20 2. Prepare the entry for depreciation expense using a general journal. If an amount box does not require an entry, leave it blank. pment records for Johnson Machine Co. for the year follow. Johnson Machine uses the straight-line method of depreciation. In the case of assets acquired by the fifteenth day of the month, depreciation should be computed for the entire month. In the case of assets acquired after the the month, no depreciation should be considered for the month in which the asset was acquired. fifteenth day of Date Purchased Salvage Purchase Price $20,000 24,000 18,000 14,000 40,000 Asset Useful Life valuer 8 years $4,000 January 1 Truck #1 Truck #2 Tractor #1 Tractor #2 Forklift 4,000 April 10 3,000 May 1 2,000 June 18 4,000 September 1 10

Explanation / Answer

Depreciation Cost of the Asset - Salavage value                 No of years Asset Cost Salvage value Life Depreciation for the year Date of purchase Depreciation for that year Truck 1 20000 4000 8 2000 Jan-01 2000 Truck 2 24000 4000 8 2500 Apr-10 1875 For 9 Monts Truck 3 18000 3000 5 3000 May-01 2000 For 8 Monts Truck 4 14000 2000 6 2000 Jun-18 1000 6 Mohts Truck 5 40000 4000 10 3600 Sep-01 1200 For 4 monts 8075 Depreciation 8075     Accumulative depreciation 8075 Profit & Loss 8075       Depreciation 8075

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