Ask Experts Questions for FREE Help !
Ask
    blessed38's Avatar
    blessed38 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 9, 2011, 08:31 PM
    Adjusting entry for depreciation
    The equipment was purchased in 2009 and is being depreciated using the straight - line method over an eight-year useful life with no salvage value.

    Equipment accumulated Depreciation-equip
    Debit credit
    75,000

    Debit Credit
    10,000

    I am not sure if I am doing the calculation correctly. 75000/96 or 10000/96

    How can I calculate without purchase price or salvage value?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Oct 10, 2011, 06:47 AM
    You will take your cost of equipment, which is $75,000 minus the salvage value, which is zero and divide that by 96 to get the monthly rate of depreciation times the number of months you are calculating the depreciation for.
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!

Adjusting entry for depreciation on equipment [ 3 Answers ]

What account should entry for depreciation on equipment? Thanks,

Adjusting entry for depreciation [ 3 Answers ]

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?

What is the adjusting entry for depreciation? [ 1 Answers ]

What is the adjusting entry on 12/31/95 for annual depreciation as a % cost for building 3%; equipment 12% ? Unadjusted trial balance: Db Building 144,000 Cr accumlated depr. Building 16,200 Db Equipment 58,000 Cr accumlated depre. 13,920

Depreciation in an adjusting entry [ 2 Answers ]

If the estimated depreciation for office equipment were $42,000, what would the adjusting entry contain? I thought u would credit Depreciation Expense, Office Equipment for 42000, but I don't know if that is right?? The other choices are You could credit to accumulated depreciation,...

View more questions Search