18. On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.
Using straight line depreciation, prepare the journal entry to record depreciation expense for (a) the first year, (b) the second year and (c) the last year.
19.
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Williams Company acquired machinery on July 1, 2009, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double declining balance method of depreciation. On October 1, 2012, Williams sold the equipment for $75,000. 1) Record the journal entry for the depreciation on this machinery for 2012. 2) Record the journal entry for the sale of the machinery. 20.
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