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View Full Version : What adjusting entrys do I use for straight line depreciation


joewo
Jun 8, 2010, 06:42 AM
I must make adjusting entries for a company that purchased a copy machine for 50000.00 on April 1 2003 life of machine is 5years and salvage value is 5000.00.
I must show adjusting entries for depreciation on Dec.31 2003thru 2005.
how due I show these entrys? Can you help show me the adjusting entrys..

pready
Jul 3, 2010, 12:42 PM
To calculate depreciation expense you need to take the cost - salvage value = dpreciable base

Then you take the dpreciable base divided by the number of years to get the depreciation expense per year.

for 2003 you will take the depreciaiton expense for the year * 10/12 to get your depreciation expense for10 months.

2004 and 5 will be a full years expense.

The journal entry will be: Debit Depreciation Expense for the amount and Credit Accumulated Dpreciation for the amount.