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    Journal Entries for Depreciation on Assets

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    Lindy Rig, the new controller of Bellingham Company, has reviewed the expected
    useful lives and salvage values of selected depreciable assets at the beginning of 2002. Her findings are as follows.

    (see chart in attached file)

    All assets are depreciated by the straight-line method. Bellingham Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Lindy's proposed changes.
    (a) Compute the revised annual depreciation on each asset in 2002.
    (show computations.)
    (b) Prepare the entry (or entries) to record depreciation on the building in 2002.

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    Solution Preview

    Please see slolutiong content here and in the word file attached. The file contains all the details, explanations and solution. The calculations/computations are in incluned format. Calculations and entries for warehouse are also provided.

    A. Computation of the revised annual depreciation on each asset in 2002. (Computations are in inclined format)

    Type of asset Cost of ...

    Solution Summary

    Attached solution explains journal entries for depreciation on assets using straight line depreciation