Presented below is information related to equipment owned by Blossom Company as of December 31, 2017.- **Cost:** $5,760,000- **Accumulated depreciation to date:** $576,000- **Expected future net cash flows:** $3,840,000- **Fair value:** $2,688,000Assume that Blossom will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. ### Journal Entry for Depreciation Expense#### InstructionsPrepare the journal entry to record depreciation expense for the year 2018. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Note that credit account titles are automatically indented when an amount is entered; do not indent manually.#### Journal Entry Table- **Columns**: - **Date**: Specifies the date of the entry. - **Account Titles and Explanation**: Fields to input the account name and a brief explanation. - **Debit**: Field to input the debit amount. - **Credit**: Field to input the credit amount.- **Row Information**: - **Date**: December 31, 2018 - **Account Titles and Explanation**: Space to enter the account information. - **Debit**: Space to enter the debit amount. - **Credit**: Space to enter the credit amount.This table is designed for recording financial transactions related to depreciation expense as part of accounting practices.

Name: Presented below is information related to equipment owned by Blossom
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Description: Presented below is information related to equipment owned by Blossom Company as of December 31, 2017.- **Cost:** $5,760,000- **Accumulated depreciation to date:** $576,000- **Expected future net cash flows:** $3,840,000- **Fair value:** $2,688,000As

Fair value $2,688,000 Life / 4 Depreciation Expenses $672,000 Depreciation Expenses $672,000 Accumulated Deprecation-Equipment $672,000

Business

Accounting

Presented below is information related to equipment owned by Blossom Company at December 31, 2017. Cost $5,760,000 Accumulated depreciation to date 576,000 Expected future net cash flows 3,840,000 Fair value 2,688,000 Assume that Blossom will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

Presented below is information related to equipment owned by Blossom Company at December 31, 2017. Cost $5,760,000 Accumulated depreciation to date 576,000 Expected future net cash flows 3,840,000 Fair value 2,688,000 Assume that Blossom will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

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

Presented below is information related to equipment owned by Blossom Company as of December 31, 2017.

- **Cost:** $5,760,000
- **Accumulated depreciation to date:** $576,000
- **Expected future net cash flows:** $3,840,000
- **Fair value:** $2,688,000

Assume that Blossom will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.

### Journal Entry for Depreciation Expense

#### Instructions
Prepare the journal entry to record depreciation expense for the year 2018. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Note that credit account titles are automatically indented when an amount is entered; do not indent manually.

#### Journal Entry Table
- **Columns**:
- **Date**: Specifies the date of the entry.
- **Account Titles and Explanation**: Fields to input the account name and a brief explanation.
- **Debit**: Field to input the debit amount.
- **Credit**: Field to input the credit amount.

- **Row Information**:
- **Date**: December 31, 2018
- **Account Titles and Explanation**: Space to enter the account information.
- **Debit**: Space to enter the debit amount.
- **Credit**: Space to enter the credit amount.

This table is designed for recording financial transactions related to depreciation expense as part of accounting practices.

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