Question Details

(solution) Bill's Lawn Care Mini Practice Part 5 In June, Bill made


Bill?s Lawn Care Mini Practice Part 5

In June, Bill made several purchases to accommodate his growing business.

June 2 Purchased a storage location for lawn care equipment, paid $45,000 for a building on 1 acre. The land is appraised at $8,000. The building has an estimated life of 10 years with a $5,000 salvage value. Bill paid $2,000 down and financed the remaining purchase price with a 5% 5 year note.

June 4 Purchased a trailer to haul lawn care equipment for $2,300, estimated life is 5 years with no salvage value. Bill paid for the purchase in cash.

June 5 Purchased a gas powered trimmer for $1,200 and a commercial leaf-blower for $1,500. Bill estimates they will each have a two year life and no salvage value. Bill paid for both of these pieces of equipment on account.

These are in addition to the three assets Bill acquired in May:

Date Item Cost Estimated Life Salvage Value
May 2 Truck $5,000 5 years $500
May 5 Lawn Mower $300 2 years $0
May 5 Aerator $500 2 years $0

Depreciation was recorded in May for these assets using the straight-line method however Bill is considering other depreciation methods and has asked you to prepare a comparison of the straight-line method with the double declining balance (200% DDB) method before he decides.

Instructions:

1. Using the chart of accounts provided below and the Excel template provided with this assignment, record the transactions for the new assets purchased in June, 2014. Start with Page 7 for the journal entries. Explanations are optional.

2. Prepare a monthly schedule of depreciation for each of the seven assets for 2014 using 1) straight-line and 2) 200% DDB. (Assume assets purchased before the 15th of the month will be depreciated as if owned for the entire month). Remember that you are calculating monthly depreciation, not annual and adjust your depreciation rate. Carry your depreciation rate to four decimals and round the depreciation expense to two decimals.

3. Bill has decided that equipment will be depreciated using straight-line and the building using 200% DDB. Prepare the adjusting journal entries for depreciation for the month of June, 2014. Start with Page 8 for the adjusting journal entries. Explanations are optional. ?



GENERAL JOURNAL

 

DATE DESCRIPTION Page

 

POST.

 

REF. DEBIT GENERAL JOURNAL

 

DATE DESCRIPTION CREDIT Page

 

POST.

 

REF. DEBIT CREDIT Asset Information: Truck, $5,000 cost, 5 year life, $500 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Lawn Mower, $300 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Aerator, $500 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Building, $37,000 cost, 10 year life, $5,000 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Trailer, $2,300 cost, 5 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Trimmer, $1,200 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14 Asset Information: Leaf Blower, $1,500 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14 Asset Information: Truck, $5,000 cost, 5 year life, $500 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Lawn Mower, $300 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Aerator, $500 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

May-14

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Building, $37,000 cost, 10 year life, $5,000 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Trailer, $2,300 cost, 5 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 

Asset Information: Trimmer, $1,200 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14 Asset Information: Leaf Blower, $1,500 cost, 2 year life, $0 salvage value

 

Computation

 

End of Year

 

Monthly

 

Depreciation

 

Depreciable

 

Depreciation

 

Accumulated

 

Book

 

=

 

Expense

 

Cost

 

Rate

 

Depreciation

 

Value

 

Month

 

Jun-14

 

Jul-14

 

Aug-14

 

Sep-14

 

Oct-14

 

Nov-14

 

Dec-14

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jan 30, 2021

PRICE: $15

Solution~0001017754.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Jan 30, 2021

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now