1. Calculation of Amount of Depreciation for the month of October | |
Description | Amount $ |
Cost of Computer Equipment | 57600 |
Salvage Value | 0 |
Life of Computer | 3 years |
Annual Depreciation (57600/3) | 19200 |
Monthly Depreciation (19200/12) | 1600 |
Hence Depreciation for October Month will be $1600 | |
2. Adjusting entry for recording depreciation on October 31 | |||
Date | Particulars | Dr | Cr |
31.10.2019 | Depreciation Expenses - Computer Equipment | 1600 | |
Accumulated Depreciation- Computer Equipment | 1600 |
3. T Accounts | |||||
Computer Equipment | |||||
Date | Account | Dr $ | Date | Account | Cr $ |
1-Oct | Cash | 57600 | |||
Accumulated Depreciation-Computer Equipment | |||||
Date | Account | Dr $ | Date | Account | Cr $ |
31-Oct | To Balance C/d | 1600 | 31-Oct | By Depreciation Expenses- Computer Equipment | 1600 |
Deprecition Expenses-Computer Equipment | |||||
Date | Account | Dr $ | Date | Account | Cr $ |
31-Oct | To Accumulated Depreciation-Computer Equipment | 1600 | 31-Oct | By Profit & Loss Account | 1600 |
4. Computer Equipment's Book Value as on 31 Oct | |
Cost of Computer Equipment | 57600 $ |
Less-Accumulated Depreciation- Computer Equipment up to 31 Oct | 1600 $ |
Book Value of Computer Equipment as on 31 Oct | 56000 $ |
On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to...
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