Reference no: EM132591191

Question - Jelly Bean had the following property, plant and equipment purchases during 2014:

(1) On April 4, equipment costing $150,000 with a 5-year service life and an estimated $40,000 residual value was purchased.

(2) On October 4, a machine costing $230,000 with a 5 year service life and an estimated $50,000 residual value was purchased.

Assuming Jelly Bean has a December 31 year end, prepare the necessary adjusting journal entries at December 31, 2014 to record depreciation under the following depreciation methods (using the nearest whole month method):

(a) Straight-line.

(b) Double-declining-balance.