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
|
|
|
|
|
|
|
|
|
|
|
|
|
|