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Group Depreciation Entries Lundquist Inc uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21% The balance in the furniture account on

Group Depreciation Entries

Lundquist, Inc., uses the group depreciation method for its furniture account. The depreciation rate used for furniture is 21%. The balance in the furniture account on December 31, 2007, was $125,000, and the balance in Accumulated Depreciation—Furniture was $61,000. The following purchases and dispositions of furniture occurred in the years 2008–2010 (assume that all purchases and disposals occurred at the beginning of each year).

Year

Assets Purchased—Cost (Cash)

 

Assets Sold

 

 

Cost

Selling Price (Cash)

2008                     

$35,000

$27,000

$8,000

2009                    

27,600

15,000

6,000

2010                    

24,500

32,000

8,000

1. Prepare the summary journal entries Lundquist should make each year (2008–2010) for the purchase, disposition, and depreciation of the furniture.

2. Prepare a summary of the furniture and accumulated depreciation accounts for the years 2008-2010.

Jun 17 2020 View more View Less

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