Prepare any necessary journal entries to record the cost

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COST AND DEPRECIATION

On January 1, 2009, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop paid $23,000 cash for the cooler. Quick Stop also paid $730 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $2,410 to have the old cooler dismantled and removed. Quick Stop also paid $820 to a contrac- tor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of six years and a residual value of $200. Quick Stop uses the straight-line method of depreciation.

Required:

1. Prepare any necessary journal entries to record the cost of the cooler.

2. Prepare the adjusting entry to record 2009 depreciation expense on the new cooler.

3. What is the book value of the cooler at the end of 2009?

Reference no: EM13938840

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