On January 2, 2021, Daeva Fumiture purchased display shelving for $8,700 cash, expecting the shelving to remain in service for five years Daeva depreciated the shelving on a double-declining basis, with $1,800 estimated residual value. the company for cash Read the reman Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries) Journal Entry Date Sep 30 Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures Debit 1,500 KEE Credit 1,566 Show how to compute the gain or loss on the disposal of the shelving (Use a minus sign or parentheses for a loss) Sales proceeds Book value Gain (Loss) on sale
On January 2, 2021, Daeva Fumiture purchased display shelving for $8,700 cash, expecting the shelving to remain in service for five years Daeva depreciated the shelving on a double-declining basis, with $1,800 estimated residual value. the company for cash Read the reman Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries) Journal Entry Date Sep 30 Accounts Depreciation Expense-Fixtures Accumulated Depreciation-Fixtures Debit 1,500 KEE Credit 1,566 Show how to compute the gain or loss on the disposal of the shelving (Use a minus sign or parentheses for a loss) Sales proceeds Book value Gain (Loss) on sale
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Topic Video
Question
Please help me
Transcribed Image Text:On January 2, 2021, Daeva Fumiture purchased display shelving for $8,700 cash, expecting the shelving to remain in service for five years Daeva depreciated the shelving on a double-declining-balance
basis, with $1,800 estimated residual value.
the
for
cash
Read the reman
Start by recording depreciation expense on the shelving for 2022. (Record debits first, then credits. Exclude explanations from any journal entries)
Journal Entry
Date
Sep 30
Accounts
Depreciation Expense-Fixtures
Accumulated Depreciation-Fixtures
Debit
1,500
GEE
Credit
1,566
Show how to compute the gain or loss on the disposal of the shelving (Use a minus sign or parentheses for a loss)
Sales proceeds
Book value
Gain (Loss) on sale
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education