Journalizing and posting an adjusting entry for depreciation and determining book value On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements Calculate the amount of depreciation for the month of October using the straight-line depreciation method. Record the adjusting entry for depreciation on October 31. Post the purchase of October 1 and the depreciation on October 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation—Computer Equipment, and Depreciation Expense—Computer Equipment. Show their balances at October 31. What is the computer equipment’s book value on October 31?
Journalizing and posting an adjusting entry for depreciation and determining book value On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements Calculate the amount of depreciation for the month of October using the straight-line depreciation method. Record the adjusting entry for depreciation on October 31. Post the purchase of October 1 and the depreciation on October 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation—Computer Equipment, and Depreciation Expense—Computer Equipment. Show their balances at October 31. What is the computer equipment’s book value on October 31?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 9SPA: CALCULATING AND JOURNALIZING DEPRECIATION Equipment records for Johnson Machine Co. for the year...
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Journalizing and
On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero.
Requirements
- Calculate the amount of depreciation for the month of October using the
straight-line depreciation method. - Record the adjusting entry for depreciation on October 31.
- Post the purchase of October 1 and the depreciation on October 31 to T-accounts for the following accounts: Computer Equipment,
Accumulated Depreciation —Computer Equipment, and Depreciation Expense—Computer Equipment. Show their balances at October 31. - What is the computer equipment’s book value on October 31?
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