Depreciation : Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span. Adjusting Entries : Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence. Rule of Debit and Credit: Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity . Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses. To prepare: The adjusting entry for depreciation expense.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Compute the labor quantity variance.

I am trying to find the accurate solution to this general accounting problem with appropriate explanations.

Can you explain the correct approach to solve this general accounting question?

Answer 2

Question

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Answer 6

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Answer 7

Chapter 3, Problem 3.7APE

To determine

Depreciation:

Depreciation is an accounting method which is used to allocate the value of fixed assets (except land), over a period of time due to use, wear and tear or obsolescence. It is also used to allocate the cost of asset over its life span.

Adjusting Entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of one accounting period. These entries are passed in the books of accounts as per the revenue recognition principle and the expenses recognition principle to adjust the revenue, and the expenses of a business in the period of their occurrence.

Rule of Debit and Credit:

Debit - Increase in all assets, expenses & dividends, and decrease in all liabilities and stockholders’ equity.

Credit - Increase in all liabilities and stockholders’ equity, and decrease in all assets & expenses.

To prepare: The adjusting entry for depreciation expense.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (A) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Does every adjusting entry have an effect on...Ch. 3 - Prob. 9DQ Ch. 3 - (A) Explain the purpose of the two accounts:...

Solution Summary: The author explains that depreciation is an accounting method which is used to allocate the value of fixed assets (except land) over a period of time due to use, wear and tear or obsolescence.

Concept explainers

Videos

Want to see the full answer?

Chapter 3 Solutions