Oriole Enterprises purchased equipment on January 1, 2020. at acostof €342.000. Orlole uses the straight-line depreciation mathod,a 5 year estimated useful ife, andno residual value. At the endof 2020, independentappraisers determined that the assets have a fairvalue of €318.000.Prepare the journal entry to record 2020depreciation using the straight-line method. (Credit account tities ave automaticallyIndented when amoent is entered. Do not indent monuolAccoont Titles and ExplanationDebitCredit(To record depreciation experise)Prepare the journal entry torecord the revaluation of the equipment. (Credit occount titles ore outomatically Indented when omountIsentered. Do not Indent manually.)Account Titles and ExplanationDebitCredit(To adjust the plant assets to fair value and record revaluationsurplus)eTextbook and MediaListof AccountsPrepare the journal entry to record 2021 depreciation, assuming no additional revaluation. (Credit account titles are outomaticallyindented when omournt is entered Donot indent manually)ACcount Titles and ExplanationDebitCredit(To record depreciation expense)

Name: Oriole Enterprises purchased equipment on January 1, 2020. at acostof
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Description: Oriole Enterprises purchased equipment on January 1, 2020. at acostof €342.000. Orlole uses the straight-line depreciation mathod,a 5 year estimated useful ife, andno residual value. At the endof 2020, independentappraisers determined that the asset

Revaluation: It implies to an increase in the fixed asset's current market value, compared to it's…

Business

Accounting

Oriole Enterprises purchased equipment on January 1, 2020. at acostof€342.000. Oriole uses the straight-line depreciation method. a 5-year estimated useful ife, and no residual value. At the endof 2020, independentappraisers determined that the assets have a fair value of E318.000. Prepare the journal entry to record 2020depreciation using the straight-ine method. (Credit account titles ave outomatically Indented when amoent isentered Do not indent monuolly) Account Titles and Explanation Debit Credit (To record deprecietion experise) e the journal entry torecord the revaluation of the equipment. (Credit occount titles are outomatically Indented when omount ed. Do not indent manually) Debit Credit unt Titles and Explanation adjust the plart assets to fair value and record revaluation clus) Textbook and Media stof Accounts e the journal entry to record 2021 depreciation, assuming no additional revaluation. (Credit account titles ore outomaticaly ed when amount is entered Do not indent manuolly) unt Titles and Explanation Debit Credit ecord depreciation expense)

Oriole Enterprises purchased equipment on January 1, 2020. at acostof€342.000. Oriole uses the straight-line depreciation method. a 5-year estimated useful ife, and no residual value. At the endof 2020, independentappraisers determined that the assets have a fair value of E318.000. Prepare the journal entry to record 2020depreciation using the straight-ine method. (Credit account titles ave outomatically Indented when amoent isentered Do not indent monuolly) Account Titles and Explanation Debit Credit (To record deprecietion experise) e the journal entry torecord the revaluation of the equipment. (Credit occount titles are outomatically Indented when omount ed. Do not indent manually) Debit Credit unt Titles and Explanation adjust the plart assets to fair value and record revaluation clus) Textbook and Media stof Accounts e the journal entry to record 2021 depreciation, assuming no additional revaluation. (Credit account titles ore outomaticaly ed when amount is entered Do not indent manuolly) unt Titles and Explanation Debit Credit ecord depreciation expense)

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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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

Oriole Enterprises purchased equipment on January 1, 2020. at acostof €342.000. Orlole uses the straight-line depreciation mathod,
a 5 year estimated useful ife, andno residual value. At the endof 2020, independentappraisers determined that the assets have a fair
value of €318.000.
Prepare the journal entry to record 2020depreciation using the straight-line method. (Credit account tities ave automatically
Indented when amoent is entered. Do not indent monuol
Accoont Titles and Explanation
Debit
Credit
(To record depreciation experise)
Prepare the journal entry torecord the revaluation of the equipment. (Credit occount titles ore outomatically Indented when omount
Isentered. Do not Indent manually.)
Account Titles and Explanation
Debit
Credit
(To adjust the plant assets to fair value and record revaluation
surplus)
eTextbook and Media
Listof Accounts
Prepare the journal entry to record 2021 depreciation, assuming no additional revaluation. (Credit account titles are outomatically
indented when omournt is entered Donot indent manually)
ACcount Titles and Explanation
Debit
Credit
(To record depreciation expense)

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