Oriole Enterprises purchased equipiment on January 1. 2020, at acost of €342,000. Oriale uies the straight-line depreciation method, a 5-year estimated useful ife, and no residual value. At the endof 2020, independent appraisers determined that the assets have a fair value of €3 18.000. Prepare the journal entry to record 2020depreciation using the straight-line method. (Credit account titles ave automatically Indented when amoent is entered Do not indent manuolly Accoont Ttles and Explanation Debit Credit
Oriole Enterprises purchased equipiment on January 1. 2020, at acost of €342,000. Oriale uies the straight-line depreciation method, a 5-year estimated useful ife, and no residual value. At the endof 2020, independent appraisers determined that the assets have a fair value of €3 18.000. Prepare the journal entry to record 2020depreciation using the straight-line method. (Credit account titles ave automatically Indented when amoent is entered Do not indent manuolly Accoont Ttles and Explanation Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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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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