Ask Question
18 July, 22:59

On January 1, 2022, Ivanhoe Creek Country Club purchased a new riding mower for $15,400. The mower is expected to have a 10-year life with a $2,700 salvage value. What journal entry would Ivanhoe Creek make on December 31, 2022, if it uses straight-line depreciation? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

+2
Answers (1)
  1. 19 July, 00:18
    0
    Answer and Explanation:

    The Journal entry is shown below:-

    Depreciation expense Dr, $1,270

    To Accumulated depreciation $1,270

    (Being depreciation expenses is recorded)

    Working note

    Depreciation per year using SLM = (Cost - Salvage value) : Useful life

    = ($15,400 - $2,700) : 10

    = $12,700 : 10

    = $1,270

    For recording the depreciation expenses we simply debited the Depreciation expense and credited the accumulated expenses.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On January 1, 2022, Ivanhoe Creek Country Club purchased a new riding mower for $15,400. The mower is expected to have a 10-year life with ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers