### Asset Depreciation Exercise#### Given Information:- **Cost of Asset:** $280,000- **Accumulated Depreciation at Beginning of Year:** $95,000- **Current Year Depreciation:** $30,000### Instructions:**A. Adjusting Journal Entry for Depreciation on December 31:**Make the necessary journal entry to record the depreciation for the year. Use the space provided to enter the date, account titles, and amounts. If a box doesn't require an entry, leave it blank.**B. Calculate the Net Book Value (NBV) on December 31:**Determine the NBV of the asset after accounting for depreciation. Enter the calculated value in the space provided.---#### Explanation:- **Journal Entry Section:** - There are two dropdown menus likely for selecting accounts related to depreciation (e.g., "Depreciation Expense" and "Accumulated Depreciation"). - Two accompanying boxes are for entering the corresponding monetary amounts.- **Net Book Value Calculation:** - The NBV can be calculated by subtracting the total accumulated depreciation (beginning balance plus current year depreciation) from the cost of the asset. - Enter the result in the provided box.This exercise aids in understanding the accounting process for asset depreciation, adjusting journal entries, and calculating net book value. **Instructions for Adjusting Journal Entries and Net Book Value Calculation****Given Information:**- **Cost of asset:** $280,000- **Accumulated depreciation at the beginning of the year:** $95,000- **Current year depreciation:** $30,000**Task A: Adjusting Journal Entry**Make a December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank.- **Dropdown Options:** - Accumulated Depreciation - Common Stock - Depreciation Expense - Insurance Expense - Prepaid Insurance**Task B: Net Book Value Calculation**Determine the net book value (NBV) of the asset on December 31.- **Blank for Calculation:** - $[Enter the calculated NBV value]**Explanation:**For Task A, select the appropriate accounts from the dropdown and enter the correct amounts to record the adjusting journal entry. For Task B, calculate the net book value by subtracting the total accumulated depreciation from the cost of the asset, then input the result in the provided space.

Depreciation: Depreciation is a method that reallocates the cost of tangible assets over their…

Using the following information: Cost of asset, $280,000 Accumulated depreciation, beginning of year, $95,000 Current year depreciation, $30,000 A. Make the December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank. December 31 B. Determine the net book value (NBV) of the asset on December 31.

Using the following information: Cost of asset, $280,000 Accumulated depreciation, beginning of year, $95,000 Current year depreciation, $30,000 A. Make the December 31 adjusting journal entry for depreciation. If an amount box does not require an entry, leave it blank. December 31 B. Determine the net book value (NBV) of the asset on December 31.

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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