I have accumulated depreciation and depreciation expense. Do they go together on the Asset side of the balance sheet? My balance sheet is not balancing! The accumulated depreciation is subtracted from the assets on my balance sheet. If I add the depreciation expense to the assets, my balance sheet balances. :D What to do? I have attached a copy of the work...

Depreciation should show up as an expense in the income statement. I do not see any depreciation on the income statement. It should not be added back on the balance sheet. This will change your net income line on the balance sheet within the equity section, and hopefully you will be in balance.

I am having a problem with my adjusted trial balance and i think it's in the depreciation of office & computer equipment. for office equipment the value 10,000 with a four year life and on salvage value. 10000/4=2500, the equipment was bought 10/07, how would i figure this in monthly depreciation? What i am getting is 2500/12=208, would this be correct?:confused:

where am i going wrong?

I dont know if this will help now after such a long time. But, if you add a depreciation expense of $ 3000.00 into your income statement the following will happen:

total expense = $ 37,530

Net income

I dont know if this will help now after such a long time. But, if you add a depreciation expense of $ 3000.00 into your income statement the following will happen:

total expense = $ 37,530

Net income = $ 28,890

Put this amount into the balance sheet under equity and the following will happen:

Total Owners Equity = $ 113,690

Hence, Total Liabilities and Owners Equity = $ 164,700 = Total Assets

Now your balance sheet balances..

Hope this helps.....

Let me know if you have any other questions.

Regards,

ANUPAM