Champion Company Purchased and Installed Carpet in Its New General

question 195

Essay

Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.​
(a)Prepare the journal entries necessary for recording the purchase of the new carpet.
(b)​Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet assuming that Champion Company uses the straight-line method.

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Definitions:

Dissent Procedure

A formal process allowing individuals or entities to express disagreement or objection within a particular framework or organization.

Pre-Incorporation Contracts

Agreements entered into on behalf of a company before it is formally incorporated, which the company may later adopt or reject.

Ratifying

The formal approval or confirmation of an agreement or treaty, often requiring the final consent of the involved parties or governing bodies.

Personal Liability

involves the responsibility of an individual to personally satisfy debt or liability, potentially involving personal assets.