View Full Version : Adjusting entry for depreciation
bluemaple45
Jun 14, 2011, 07:02 PM
The market value of equipment had decreased by 30% of its original cost. Depreciation for the quarter totaled 1,000.00. (The equipment acct has 15,000.00 in it)
What would be the adjusting entry on September 30?
pready
Jun 15, 2011, 07:25 AM
The market value has no bearing on this problem.
the journal entry will be:
Debit depreciation Expense for the amount given
Credit Accumulated Depreciation - Equipment Account for the amount given.
bluemaple45
Jun 15, 2011, 10:45 AM
I am sort of confused as to what that amount would be. It states that depcreciation for the quarter is 1000.00. But I wouldn't make an adjusting entry at the end of September, for the entire 1000.00. So would it be for a third of that amount, meaning just 333.00 for the adjusting entry for end of September?
pready
Jun 15, 2011, 02:42 PM
Being in your problem it states "depreciation for the quarter totaled 1,000.00", then the amount should be 1,000.00 because you are recording the depreciation for July, Augest, and September.