**Educational Content on Journal Entries for Depreciation Transactions****Scenario:**On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. The annual depreciation on this equipment is $2,000, computed using straight-line depreciation.**Task:**Complete the necessary journal entry to update the accumulated depreciation by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.**Journal Entry Worksheet:**- **Explanation:** This worksheet is used to calculate the necessary journal entries for business transactions, specifically to update depreciation records for assets. - **Instructions:** Begin by entering debits before credits in the journal entry table.**Diagram Explanation:**- A table is presented with three columns: "Date," "General Journal," "Debit," and "Credit."- **Date Column:** Displays the transaction date (e.g., Dec. 29).- **General Journal Column:** Where the account titles are recorded, showing the accounts affected by the transaction.- **Debit and Credit Columns:** Indicate the account changes using financial amounts, where debits and credits must balance.**Purpose:**This exercise helps in understanding the process of updating financial records for depreciation, ensuring accuracy in accounting practices. It exemplifies the importance of maintaining up-to-date records to reflect true asset values and financial positions.

Name: **Educational Content on Journal Entries for Depreciation Transaction
Uploaded: 2024-03-05T11:50:36.000Z
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Description: **Educational Content on Journal Entries for Depreciation Transactions****Scenario:**On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 20

The journal entries are prepared to keep the record of day to day transactions of the business on regular basis. The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage and the passage of time. JOURNAL Date Particulars Debit Amt $ Credit amt $ Dec 29, 2021 Depreciation expense 2,000 Accumulated Depreciation 2,000 (To record depreciation expense for the period) Annual Depreciation = $2,000

Business

Accounting

On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Note: Enter debits before credits. Date Dec. 29 General Journal Debit Credit

On December 29, 2021, Patel Products, Incorporated, sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 On December 29, 2021, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2020. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Note: Enter debits before credits. Date Dec. 29 General Journal Debit Credit

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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