Hello everyone, this question is driving me mad. although i did solve most of it, its just the accumulated amortization and amortization expense part thats driving me crazy.

Here's the relevant data:


Equipment, Debit: 13,440
Accumulated amortization—equipment, Credit: 3,300

Buses, Debit: 140,400
Accumulated amortization—buses, Credit: 46,800

Additional information:

The equipment has an estimated useful life of eight years. The buses have an estimated useful life of six years.

And the question:

What should be the following amounts in the Adjusted Trial Balance at June 30, 2006?

Accumulated amortization—equipment, Credit:_________

Accumulated amortization—buses, Credit:________

Amortization expense, Debit:________

CaptainForest

Buses:
140,400 / 6 = 23,400 a year (so after 2 years, it should be at 46,800 which is what it is now.)

So, you add 23,400 to amortization expense and to accumulated amortization

Equipment:
13,440 / 8 = 1,680 per year

Accumulated amortization—equipment, Credit:_________3,300 + 1,680 = 4,980

Accumulated amortization—buses, Credit:________ 46,800 + 23,400 = 70,200

Amortization expense, Debit:________1,680 + 23,400 = 25,080

kamranhsiddiqi

Thanks captain, i just aced my online quiz thanks to you.

CaptainForest

you're welcome and congrads on aceing it!