The adjusted trial balance for Sheridan Company is given below: SHERIDAN COMPANY Trial Balance August 31, 2022 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Before Adjustment Dr. $10,360 8,140 2,890 4,060 16,000 Cr. $3,600 5,170 Dr. After Adjustment $10,360 8,780 1,070 2,760 16,000 Cr. $4,800 5,170 1.520

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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.