Question

Continuing Problem P9-43 Calculating and journalizing partial-year depreciation This problem continues the Canyon Canoe Company situation from Chapter 8. Amber and Zack Wilson are continuing to review business practices. Currently, they are reviewing the company's property, plant, and equipment and have gathered the following information: Monthly Estimated Residual Depreciation Depreciation Expense Estimated Acquisition Date Asset Cost Life Value Method* Canoes Nov. 3, 2018 $4,800 SL $100 4 years Land Dec. 1, 2018 85,000 n/a Building Dec. 1, 2018 35,000 5,000 SL 500 5 years Canoes Dec. 2, 2018 7,200 4 years SL 150 300 Mar. 2, 2019 Computer 3,600 3 years DDB Office Furniture Mar. 3, 2019 3,000 5 years 600 SL SL = Straight-line; DDB Double-decining-balance Requirements 1. Calculate the amount of monthly depreciation expense for the computer and office furniture for 2019 2. For each asset, determine the book value as of December 31, 2018. Then, calcu- late the depreciation expense for the first six months of 2019 and the book value as of June 30, 2019. 3. Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2019.

Answer 1

Depreciation expense balance Methues of - Double Doublining computer Rate 3.60 360 Xio 3 33.33%. x2 - 66.67% 360 x 66.67%. =240 on Annual Peprecation expensez . Montey depreciation - ano [200] 12 office Furniture = straighline Method Cost = ow & stimated life = Residual value= 5 Years 6o Annual den 300 - 600 59९०४ 4&o Montly dep, 4801940) 12

2 Book value of of Dec 31 2018 Acquisition least 1 Accumulated dep) Boeke value Bec 31 2018) Asset ; - date 200 $460 Canoes Nov 3, 2018 $4800 85,00 Land Dec 1,2018 85ow Dec 1, 2018 Buitilding I 35,00 500 345०० 7950 canoes | Dec 2, 2018 17,200 Computer I Mar 2, 2019 360 s office fout | Mar 3,2019 | 300 Book value of bee June 30, 2018 Book value (June 30 2019) i Asset i Acquisition as 1 bod buc - date lo Jan 2019) Depo per capense / Acumulated dip C Juvezo 2-)) émoniey; 3600 $ 4000 $.100 $4600 Canon No 3 2018 85.000 $ 3000 31,500 yoo Land Ipect, 2018 85,000 Building Dec 1, 2018 34,500 Canonette Dec 2,2018 7050 computer | Mar 2,2019 I cost (3,60) soffice | March 3, 2019 | 1 Furniture cost(360) - Boo 2800 160 28५०

Partial Balance sheet (June 30, 219) 859 31, 500 seperty plant and equipment 1 Land Building 35.000 Lessin Accumulated dep 3500 canoes 12.000 less!- Acumulaled dep 1850 office . Furniture 3,000 less: Acumulated 160 dep office equipments (Computer) 3,600 10,150 2840 less... Acumulated dep 800 2800 1913 229