a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an amount box does not require, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 a1. fill in the blank 0d3791048fafffd_2 fill in the blank 0d3791048fafffd_3 1 2 fill in the blank 0d3791048fafffd_5 fill in the blank 0d3791048fafffd_6 2 a2. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Compute the book value at the end of the second year of the equipment's life. Book Value $fill in the blank a4b3dcffdff0fd9_1 b. Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200 for the 5 days beginning the previous Monday, December 31. Prepare the adjusting entry on December 31. Omit explanations. If an amount box does not require, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 December 31 fill in the blank f792c205f057f93_2 fill in the blank f792c205f057f93_3 1 2 fill in the blank f792c205f057f93_5 fill in the blank f792c205f057f93_6 2
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.
Compute the following:
a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | a1. | fill in the blank 0d3791048fafffd_2 | fill in the blank 0d3791048fafffd_3 | 1 | ||
| 2 | fill in the blank 0d3791048fafffd_5 | fill in the blank 0d3791048fafffd_6 | 2 |
a2. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Compute the book value at the end of the second year of the equipment's life.
| Book Value | $fill in the blank a4b3dcffdff0fd9_1 |
b. Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200 for the 5 days beginning the previous Monday, December 31. Prepare the adjusting entry on December 31. Omit explanations. If an amount box does not require, leave it blank.
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | December 31 | fill in the blank f792c205f057f93_2 | fill in the blank f792c205f057f93_3 | 1 | ||
| 2 | fill in the blank f792c205f057f93_5 | fill in the blank f792c205f057f93_6 | 2 |
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
