Final answer:
The warehouse transactions for Wilton Co. from 2010 to 2012 include journal entries for the purchase, annual depreciation using the double declining balance method, and the sale of the warehouse, with the corresponding amortization of assets and recognition of any gain or loss.
Step-by-step explanation:
address the student's request regarding Wilton Co.'s journal entries for the warehouse transactions from 2010 to 2012, we start by calculating the double declining balance depreciation. The warehouse cost is $84,000 with a salvage value of $2,000 and a useful life of 4 years. The straight-line depreciation rate would be 1/4 or 25%, but for the double declining method, we double this rate to 50%. Applied to the book value at the beginning of each year, this gives us the depreciation expense for that year.
Journal entries for 2010 and 2011:
Jan 1, 2010: Paid for the warehouse
Dec 31, 2010: Recorded depreciation
Dec 31, 2011: Recorded second year depreciation
To record the sale of the warehouse in 2012, we first need to calculate the accumulated depreciation for two years, then determine any gain or loss on the sale. The book value of the warehouse just before the sale would be calculated as the cost, less accumulated depreciation, which is then compared with the sale price to determine the gain or loss.
Journal entry for 2012:
Jan 1, 2012: Sold the warehouse
The exact amount of gain or loss depends on the book value and the sale price. Remember to adjust the second year's depreciation expense if necessary based on the actual calculation.