15 of 17 An equipment was bought for $12,000 on the first of January. With 5 years expected life and no salvage value. The adjustment entry to record at the end of the year is O Dr. Depreciation expense 1,000 Cr. Accumulated depreciation 1,000 O Accumulated depreciation 2,400 Cr. Depreciation expense 2,400 O Dr. Accumulated depreciation 1,000 Cr. Depreciation expense 1,000 O Dr. Depreciation expense 2,400 Cr. Accumulated depreciation 2,400
15 of 17 An equipment was bought for $12,000 on the first of January. With 5 years expected life and no salvage value. The adjustment entry to record at the end of the year is O Dr. Depreciation expense 1,000 Cr. Accumulated depreciation 1,000 O Accumulated depreciation 2,400 Cr. Depreciation expense 2,400 O Dr. Accumulated depreciation 1,000 Cr. Depreciation expense 1,000 O Dr. Depreciation expense 2,400 Cr. Accumulated depreciation 2,400
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterA: Methods Of Depreciation
Section: Chapter Questions
Problem 1P: A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in...
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
Transcribed Image Text:IZ0Z CT Kdy
Blo
15 of 17
An equipment was bought for $12,000 on the first of January. With 5 years expected life and no salvage value. The adjustment entry to record at the end of the year is
O Dr. Depreciation expense
1,000
Cr. Accumulated depreciation
1,000
Accumulated depreciation 2,400
Cr. Depreciation expense
2,400
O Dr. Accumulated depreciation 1,000
Cr. Depreciation expense
1,000
O Dr. Depreciation expense
2,400
Cr. Accumulated depreciation
2,400
< Previous Question
Next Question >
Assessment Navigator
Questionmark Perception licensed to Yarmouk University
P Type here to search
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning