April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year’s depreciation for the first year. June 30: Book the depreciation for the first half of the year on the printer equipment purchased April 22. I need help calculating the depreciation for the June 30th entry. 30-Jun Depreciation Expense Accumulated Depreciation - Printer Equipment
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.
April 22: New equipment was purchased to make printers for $55,000. Use straight line
June 30: Book the depreciation for the first half of the year on the printer equipment purchased April 22.
I need help calculating the depreciation for the June 30th entry.
| 30-Jun | Depreciation Expense |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
