Question

(62) Assume that Bridgeport uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance 2,125.) BRIDGEPORT COMPANY Partial Balance Sheet December 31, 2020 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attempts: 0 of 6 nere to search W R .

Answer 1

Method 1: Direct write off Date Description Debit Credit 31-12-2020 Depreciation Expense $ 2,550.00 Vehicle $ 2,550.00 |(To record Depreciation of truck - Direct write off method) Under this method, Depreciation expense is booked and Asset's value is reduced by the same amount. Method 2: Accumulated Depreciation Method Date Description Debit Credit 31-12-2020 Depreciation Expense $ 2,550.00 Accumulated Depreciation $ 2,550.00 |(To record Depreciation of truck - Accumulated dep method) Under this method, Depreciation expense is booked and a liabilty is created with same amount (Accumulated Depreciation).

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