6 272018 CengageNOW2 Online teaching and leaming resource fr

6 27/2018 CengageNOW2 Online teaching and leaming resource from Cengage Leaming Willow Creek Company purchased and nstalled carpet in its new general ofices on April 30 for a total cost of $35.904. The carpet is estmatad bo have a 17-year useful lifte and no resdual A. Prepare e ownal entry necessary r recoraivng ihe purchase of the new carpet Relerto the Chart of Accounts for exact wording of account lines B. Record the December 31 adjusting entry for?e persal-year depreciation expense or the carpet. assuming that Woow Creek Company uses the avaistt-linemethod. Refer to?e Chart of Accounts lor exact wording of account ties. Chart of Accounts CHART OF ACCOUNTS Willow Creek Company Ganeral Ledger ASSETS REVENUE 110 Cash 111 Petty Cash 112 Accounits Rece vable 114 Interest Receivable 115 Notes Receivable 118 Me chandise Invenlory 117 Suppies 119 Prepaid Insurance 120 Land 123 Carpet 124 Accurnulated Deprecation-Carpet 125 Equipment 410 Salee 610 Interest Revenue 620 Gain an Sale o Carpel 621 Gain on Sale of Equipment EXPENSES 510 Cost of Merchandise Sod 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Carpet 523 Delivery Expense 524 Repeirs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 532 Deprediation Expense-Equioment 533 Depletion Expense 534 Ainortizalion Expense-Palernts 535 Insurance Expense 536 Supplies Expense 539 Miscellaneous Expense 710 Interest Expense 720 Loss an Sale of Carpet 721 Loss on Sale of Equipment 130 Mineral Rights 131 Accumulated Deoleton 132 Goodwill 133 Patents LIABILITIES 210 Accounts Payable 211 Selares Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Eamings 312 D vidends 313 Income Sunmary Journal A. Prepare ge ournal entry necessary tor recording the purchase of the ?ew carpel Reler the Chart of Accounts Sor exael wordng of account titles. https:v2.cengagenowcomilm takeAssignment takeAssignmentMain do?invoker-assignments&takeAssignmentSessionlocator-assignment; takekinprogress-false2

Solution

JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Apr-30 Carpet $ 35,904 $   35,904 Cash $ 35,904 $ (35,904) (To record purchase of carpet) JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Dec-31 Depreciation expense - Carpet ($35,904/17*8/12) $ 1,408 $ (1,408) Accumulated depreciation - Carpet $   1,408 $ (1,408)