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straight-line depreciation
1.The owner invested a computer on dec. 1, 2009, worth 75,000. Adjusting entries on Dec. 31, 2009.
=the computer is already used for two years and has a remaining life of 2 years. 2. The furniture is bought dec. 6, 2009. At the end of the month, will there be an adjusting entries? what will be the adjusting entries. |
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You will need to compute the depreciation expense for one month. (Cost of the Asset - Salvage Value of the Asset) / Useful life = Depreciation Expense each year. To compute one month Depreciation you take the Depreciation Expense per year / 12 = 1 month of Depreciation Expense. The journal entry to record this is: Debit Depreciation Expense for the amount of 1 month Depreciation Credit Accumulated Depreciation for the amount |
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