Current Attempt in Progress Oriole Company owns equipment that cost $100,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $4,000 and an estimated useful life of five years. Following are the four independent situations. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $45,400 on January 2, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List oll debit entries before credit entries) Date Account Titles Jan. 2 Save for Later Debit Credit Attempts: 0 of 1 used Submit Answer
Current Attempt in Progress Oriole Company owns equipment that cost $100,000 when purchased on January 2, 2024. It has been depreciated using the straight- line method based on estimated residual value of $4,000 and an estimated useful life of five years. Following are the four independent situations. (a) Prepare Oriole Company's journal entry to record the sale of the equipment for $45,400 on January 2, 2027. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List oll debit entries before credit entries) Date Account Titles Jan. 2 Save for Later Debit Credit Attempts: 0 of 1 used Submit Answer
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
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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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