Ask Experts Questions for FREE Help !
Ask
    bluemaple45's Avatar
    bluemaple45 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jun 14, 2011, 07:02 PM
    adjusting entry for depreciation
    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?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jun 15, 2011, 07:25 AM

    The market value has no bearing on this problem.

    the journal entry will be:
    Debit depreciation Expense for the amount given
    Credit Accumulated Depreciation - Equipment Account for the amount given.
    bluemaple45's Avatar
    bluemaple45 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jun 15, 2011, 10:45 AM
    Comment on pready's post
    I am sort of confused as to what that amount would be. It states that depcreciation for the quarter is 1000.00. But I wouldn't make an adjusting entry at the end of September, for the entire 1000.00. So would it be for a third of that amount, meaning just 333.00 for the adjusting entry for end of September?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #4

    Jun 15, 2011, 02:42 PM

    Being in your problem it states "depreciation for the quarter totaled 1,000.00", then the amount should be 1,000.00 because you are recording the depreciation for July, Augest, and September.
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 expense [ 4 Answers ]

What is the effect of the adjusting entry for depreciation expense?

Depreciation for accounting adjusting entry [ 4 Answers ]

What is the adjusting entry for depreciation?

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