Beaver Construction purchases new equipment for $38,160 cash on April 1, 2018. At the time of purchase, the equipment is expected to be used in operations for six years (72 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 72 months ($530/month).1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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Business

Adam Morris

16 September, 11:52

Beaver Construction purchases new equipment for $38,160 cash on April 1, 2018. At the time of purchase, the equipment is expected to be used in operations for six years (72 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 72 months ($530/month).1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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Emmanuel Ramsey · Answer 1

Purchase:

Equipment Dr $38160

cash Cr $38160

Depreciation:

depreciation exp Dr $4770

allowance for dep Cr $4770

Explanation:

The entry to record the purchase of new equipment on April 1 2018 is as follows:

Purchase:

Equipment Dr $38160

cash Cr $38160

The second entry would be passed in order to record depreciation for the year ended on Dec 31 2018, depreciation of nine months (i. e $530 * 9) has to be recorded till Dec 31 2018, the adjusting entry is as follows:

Depreciation:

depreciation exp Dr $4770

allowance for dep Cr $4770