Homework 3

# Homework 3 - Homework#3 Accounting 225 NAME Section/Time 1...

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Homework #3, Accounting 225 NAME: ________________ Section/Time:___________ 1. a.) Angus purchased a building on April 1, 2006 for \$1,000,000 which he thinks will have a 20 year life and a \$250,000 salvage value. Prepare the journal entry to record depreciation expense for 2006 and 2007 assuming he uses straight line depreciation. b.) Daisy purchased a truck on December 4, 2007 for \$80,000 which she expects to drive for 120,000 miles over the next 5 years. At the end of the five years she expects the truck to be worth \$5,0000. If she drove the truck 4,000 miles in 2007 and 32,000 miles in 2008, what is the book value of the truck at the end of 2008? YOU MUST SHOW YOUR WORK FOR CREDIT. 2. a.) Luci has a piece of equipment for which she paid \$90,000 and currently it has \$20,000 of A/D. She sells it for \$50,000 cash, prepare the journal entry. b.) Carter has a building for which she paid \$200,000 and currently it has \$120,000 of A/D. She sells it for \$300,000 cash, prepare the journal entry. c.)

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## This note was uploaded on 07/02/2011 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Homework 3 - Homework#3 Accounting 225 NAME Section/Time 1...

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