Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Accumulated Depreciation: The company has only one fixed plant asset (equipment) that it purchased at the start of this year. That asset had cost $48,000, had an estimated life of seven years, and is expected to be valued at $8,800 at the end of the seven years. The company uses straight line depreciation method to calculate its depreciation.

Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2

Sagot :

Parrain

Based on the depreciation of the equipment, the current balance would equal $0 and but it should equal $5,600.

The adjusting entry would be:
Date                        Account title                                     Debit          Credit

December 31          Depreciation expense                   $5,600

                                Accumulated depreciation                             $5,600

How is depreciation recorded?

The current account balance would be $0 because depreciation has not yet been adjusted for.

The depreciation amount would be:

= (48,000 - 8,800) / 7

= $5,600

This amount should be credited to the Accumulated depreciation account, but debited to the Depreciation expense account as expenses usually are.

Find out more on accumulated depreciation at https://brainly.com/question/1287985.

#SPJ1

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.