On January 1, 2022, Ivanhoe Creek Country Club purchased a new riding mower for $15,400. The mower is expected to have a 10-year life with a $2,700 salvage value. What journal entry would Ivanhoe Creek make on December 31, 2022, if it uses straight-line depreciation? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer and Explanation:

The Journal entry is shown below:-

Depreciation expense Dr, $1,270

To Accumulated depreciation $1,270

(Being depreciation expenses is recorded)

Working note

Depreciation per year using SLM = (Cost - Salvage value) ÷ Useful life

= ($15,400 - $2,700) ÷ 10

= $12,700 ÷ 10

= $1,270

For recording the depreciation expenses we simply debited the Depreciation expense and credited the accumulated expenses.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know