Skip to question
The following information applies to the questions displayed below.
Stevens's Sandwich Shop had the following longterm asset balances as of January :
Cost Accumulated Depreciation Book Value
Land $ $
Building $
Equipment
Patent
Additional information:
Stevens's purchased all the assets at the beginning of
The building is depreciated over a year service life using the doubledecliningbalance method and estimating no residual value.
The equipment is depreciated over a year useful life using the straightline method with an estimated residual value of $
The patent is estimated to have a fiveyear service life with no residual value and is amortized using the straightline method.
Depreciation and amortization have been recorded for and first two years
Required:
For the year ended December third year record depreciation expense for buildings and equipment. Land is not depreciated. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field.
