On June 1,2014,Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.
Using straight line depreciation,prepare the journal entry to record depreciation expense for (a)the first year, (b)the second year and (c)the last year.
$90,000/3 years = $30,000 per full year
$30,000/12 months = $2,500 per month
1st year - $2,500 x 7 months = $17,500
Last year - $2,500 x 5 months = $12,500

Question

Quizplus · Accepted Answer

The Answer of On June 1,2014,Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.
Using straight line depreciation,prepare the journal entry to record depreciation expense for (a)the first year, (b)the second year and (c)the last year.
$90,000/3 years = $30,000 per full year
$30,000/12 months = $2,500 per month
1st year - $2,500 x 7 months = $17,500
Last year - $2,500 x 5 months = $12,500

On June 1,2014,Aaron Company Purchased Equipment at a Cost of $120,000