Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
GRECO RESORT
TRIAL BALANCE
AUGUST 31, 2014
Debit Credit
Cash $19,990
Prepaid Insurance 5,790
Supplies 3,990
Land 27,000
Buildings 127,000
Equipment 23,000
Accounts Payable $5,890
Unearned Rent Revenue 5,990
Mortgage Payable 67,000
Common Stock 92,390
Retained Earnings 14,900
Dividends 5,000
Rent Revenue 83,200
Salaries and Wages Expen 44,800
Utilities Expenses 9,200
MaintenanceExpense 3,600
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2014.
2. An inventory count on August 31 shows $686 of supplies on hand.
3. Annual depreciation rates are
(a) buildings (4%)
(b) equipment (10%).
Salvage value is estimated to be 10% of cost.
I need help with number 3 the depreciation expense calculations, i cannot figure out the amounts. Please help!
Read more: Depreciation Expense Journal Help?
