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:

Joseph Wolpe

A South African psychiatrist best known for developing systematic desensitization, a method used in behavior therapy to treat phobias and other anxiety disorders.

Virtual Reality Exposure Therapy

A counterconditioning technique that treats anxiety through creative electronic simulations in which people can safely face their greatest fears, such as airplane flying, spiders, or public speaking.

Aversive Conditioning

A type of behavior conditioning where an unpleasant or painful stimulus is used to reduce the likelihood of a behavior reoccurring.

Cognitive-behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aiming to change negative patterns.