A machine costing $320,000 was purchased on July 1, 2012. the machine has 30 years life...
A machine costing $320,000 was purchased on July 1, 2012. the machine has 30 years life and a $20,000 salvage value. The entity uses straight line depreciation. (Make the adjusting entry for 2019 on december 31st 2019.)
Show step by step how to set up the adjustment entry for the above situation.
Homework Answers
Answer
Calculation of depreciation under straight line method
= $320000-$20000/30
= $10000
Adjustment entry on 31-12-2019
Date Particulars Debit($) Credit($)
31-12-2019 Depreciation A/c Dr 10000
To accumulated depreciation 10000
(Being depreciation entry recorded )
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A machine costing $320,000 was purchased on July 1,
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