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
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...
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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.
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Transcribed Image Text: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
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