Book 2 - Chapter 6

LG 6-4.

Date	Account Titles and Explanation	Post. Ref.	Debit	Credit
Dec.	(a)
31	Depreciation Expense—Computer		2,450
	Accumulated Depreciation—Computer			2,450
	To record one year of depreciation expense: 12,250/5
	(b)
Dec.	Depreciation Expense–Drilling Equipment
31	Accumulated Depreciation—Drilling Equipment		2,550
	To record nine months of depreciation expense:			2,550
	Calculated as (35,000 − 1,000/10) × (9/12)
June	(c)
30	Depreciation Expense–Truck		5,400
	Accumulated Depreciation—Truck			5,400
	To record six months of depreciation expense:
	(54,000/5) × (6/12)

LG 6-5. $480,000. Use the formula for 10-year straight-line depreciation
[cost ( x ) – residual value (0)]/useful life (10): [(x − 0)/10] × 3/12 = 12,000.
1/10 x = 48,000
x = 480,000.

The $12,000 in the accumulated depreciation account is the current period depreciation expense for three months) because this is the first year the asset is owned.

Learning Goal 6, continued

SOLUTIONS

Section I · Adjusting the Accounts

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