Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.
(a)Prepare the journal entries necessary for recording the purchase of the new carpet.
(b)Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.

Question

Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.​
(a)Prepare the journal entries necessary for recording the purchase of the new carpet.
(b)​Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.

Quizplus · Accepted Answer

The Answer of Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.​
(a)Prepare the journal entries necessary for recording the purchase of the new carpet.
(b)​Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.

Champion Company Purchased and Installed Carpet in Its New General