b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. The company uses straight line depreciation method to calculate its depreciation. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. $ Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. $ 8,800 Debit 733 DR or CR? Debit or Credit? Credit Accumulated depreciation-Truck c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $32,000, had an estimated life of seven years, and is expected to be valued at $4,000 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. 733 Accumulated depreciation- 733 Equipment
b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $44,000, had an estimated life of five years, and is expected to have zero value at the end of the five years. The company uses straight line depreciation method to calculate its depreciation. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. $ Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. $ 8,800 Debit 733 DR or CR? Debit or Credit? Credit Accumulated depreciation-Truck c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $32,000, had an estimated life of seven years, and is expected to be valued at $4,000 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. 733 Accumulated depreciation- 733 Equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $44,000,
had an estimated life of five years, and is expected to have zero value at the end of the five years. The company uses straight line depreciation
method to calculate its depreciation.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Adjusting Entry
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
$
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
$
8,800
Debit
733
DR or CR?
Debit or Credit?
Credit
Accumulated depreciation-Truck
c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost
$32,000, had an estimated life of seven years, and is expected to be valued at $4,000 at the end of the seven years. The company uses straight line
depreciation method to calculate its depreciation.
733
Accumulated depreciation-
733
Equipment
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