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JMV Company purchased a computer for P24,000 on December 1. It is estimated that annual depreciation on

JMV Company purchased a computer for P24,000 on December 1. It is estimated that annual depreciation on

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JMV Company purchased a computer for P24,000 on December 1. It is estimated that annual depreciation on the computer will be P4,800. If financial statements are to be prepared on December 31, JMV should make which adjusting entry in the year of purchase? a.Debit Depreciation expense, P400; Credit Accumulated Depreciation, P400. b.Debit Depreciation expense, P4,800; Credit Accumulated Depreciation, P4,800. c.Debit Depreciation Expense, P1,920; Credit Accumulated Depreciation, P1,920. d.Debit Office Equipment, P2,400; Credit Accumulated Depreciation P2,400.
Transcribed Image Text:JMV Company purchased a computer for P24,000 on December 1. It is estimated that annual depreciation on the computer will be P4,800. If financial statements are to be prepared on December 31, JMV should make which adjusting entry in the year of purchase? a.Debit Depreciation expense, P400; Credit Accumulated Depreciation, P400. b.Debit Depreciation expense, P4,800; Credit Accumulated Depreciation, P4,800. c.Debit Depreciation Expense, P1,920; Credit Accumulated Depreciation, P1,920. d.Debit Office Equipment, P2,400; Credit Accumulated Depreciation P2,400.
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