Ask Experts Questions for FREE Help !
Ask
    sashyLa27's Avatar
    sashyLa27 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 9, 2011, 04:45 AM
    Adjustments in accounting?
    Computer worth P30 000 was acquired June 25, 2011 estimated life is 5 years. Make an adjustment as of December 31, 2011.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jul 9, 2011, 06:36 AM

    You need to do an adjusting entry for the depreciation on the computer. You know the cost of the computer when purchased and the estimated life of the computer. You still need to know the depreciation method to use i.e. straight-line, double-declining balance, sum of the year digits, etc... Also you should know the salvage value.

    When you calculate your depreciation you will need to calculate for 6 months of the year.

    Your adjusting entry will be:
    Debit Depreciaiton Expense for the amount of depreciation
    Credit Accumulated Depreciation - Computer for the amount of depreciation
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How should I do adjustments in accounting? [ 1 Answers ]

Adjustments in Accounting

Adjustments in accounting [ 1 Answers ]

What is for example the interest rate for a note 20,000, 10 %, 60- days. The Accrued interest day is Sep. 18 and the adjustment should be done on Sep. 30?

Accounting adjustments [ 1 Answers ]

I am having problems with adjustments to get an adjusted trial balance. The first question is : 1. As of Dec. 31, employees had earned 900 of unpaid and unrecorded salaries. The next payday is January 4, at which time 1600 of salaries will be paid. 2. The notes paable requires an interest...

View more questions Search