Vargas Company purchased a computer for $3,000 on January 1, Year 1. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjustin on December 31, Year 1 to recognize expense related to use of the computer? Multiple Choice Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Computer Accumulated Depreciation Depreciation Expense 500 600 500 500 500 600 500 500
Vargas Company purchased a computer for $3,000 on January 1, Year 1. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjustin on December 31, Year 1 to recognize expense related to use of the computer? Multiple Choice Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Computer Accumulated Depreciation Depreciation Expense 500 600 500 500 500 600 500 500
Chapter1: Financial Statements And Business Decisions
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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.
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![Vargas Company purchased a computer for $3,000 on January 1, Year 1. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Vargas record
on December 31, Year 1 to recognize expense related to use of the computer?
Multiple Choice
Depreciation Expense
Accumulated Depreciation
Depreciation Expense
Accumulated Depreciation
Depreciation Expense
Computer
Accumulated Depreciation
Depreciation Expense
500
600
500
500
500
600
500
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2Fa46c8e76-b17e-4333-9a1c-924595ecbaf8%2F3dogv4e_processed.png&w=3840&q=75)
Transcribed Image Text:Vargas Company purchased a computer for $3,000 on January 1, Year 1. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Vargas record
on December 31, Year 1 to recognize expense related to use of the computer?
Multiple Choice
Depreciation Expense
Accumulated Depreciation
Depreciation Expense
Accumulated Depreciation
Depreciation Expense
Computer
Accumulated Depreciation
Depreciation Expense
500
600
500
500
500
600
500
500
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