b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $56,000, 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. Accumulated depreciation -Truck Debit or Credit? Step 1: Determine what the current account balance equals. 24 1 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. c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $56,000, had an estimated life of seven years, and is expected to be valued at $11,200 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Accumulated depreciation -Equipment Step 1: Determine what the current account balance equals. Debit or Credit? Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adiusting entry to get from step 1 to sten 2
b. Accumulated Depreciation: The company has only one plant asset (truck) that it purchased at the start of this year. That asset had cost $56,000, 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. Accumulated depreciation -Truck Debit or Credit? Step 1: Determine what the current account balance equals. 24 1 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. c. Accumulated Depreciation: The company has only one plant asset (equipment) that it purchased at the start of this year. That asset had cost $56,000, had an estimated life of seven years, and is expected to be valued at $11,200 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation. Accumulated depreciation -Equipment Step 1: Determine what the current account balance equals. Debit or Credit? Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adiusting entry to get from step 1 to sten 2
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1CP
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