potentliquid
Oct 10, 2011, 05:31 PM
I have an unadjusted trial balance as of Dec. 31, 2010 showing Accumulated Depreciation as a credit balance = $6,375
The accumulated depreciation is for Furniture and Equipment = $85,000
The adjusting entry note given is: The cost of the furniture and equipment are being amortized in equal amounts over a 10-year period. Assume no residual value at the end of useful life.
Therefore, over 10 years, depreciation = $8,500/ year
I now am preparing an Adjusted Trial Balance as of Dec. 31, 2010 and am having trouble deciphering this question.
I originally:
-CR Accumulated Depreciation $8,500
-DR Depreciation Expense $8,500
The only thing frustrating me was the original balance of 6,375 on the unadjusted trial balance. Is this supposed to be incorporated?
A.)
The accumulated depreciation is for Furniture and Equipment = $85,000
The adjusting entry note given is: The cost of the furniture and equipment are being amortized in equal amounts over a 10-year period. Assume no residual value at the end of useful life.
Therefore, over 10 years, depreciation = $8,500/ year
I now am preparing an Adjusted Trial Balance as of Dec. 31, 2010 and am having trouble deciphering this question.
I originally:
-CR Accumulated Depreciation $8,500
-DR Depreciation Expense $8,500
The only thing frustrating me was the original balance of 6,375 on the unadjusted trial balance. Is this supposed to be incorporated?
A.)