Accounting for depreciation on plant asset and its journal

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Accounting for depreciation on plant asset and its journal entry.

On April 1, 2007, SAS Corp. purchased and placed in service a plant asset. The following information is available regarding the plant asset:

Acquisition cost ......................................................

$140,000

Estimated salvage value ..........................................

$15,000

Estimated useful life ...............................................

5 years

Make the necessary adjusting journal entries at December 31, 2007, and December 31, 2008 to record depreciation for each year using straight-line depreciation method.

 

 

Debit

Credit

Dec 31 2007

 

 

 

 

 

 

 

 

 

 

 

Dec 31 2008

 

 

 

 

 

 

 

 

 

 

 

 

Reference no: EM13356438

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