A computer, printer, and copier were purchased for a total price of Php 250,000 on August 1, 2013. The company estimated that the equipment purchased will be effectively used for 5 years and after that, the equipment can be sold for Php20,000. d. How much is the depreciation for the year 2014? e. Prepare the adjusting journal entry for years 2013 and 2014?
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.
A computer, printer, and copier were purchased for a total price of Php 250,000 on August 1, 2013. The company estimated that the equipment purchased will be effectively used for 5 years and after that, the equipment can be sold for Php20,000.
d. How much is the
e. Prepare the
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