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Beaver Construction purchases new equipment for $50,400 cash on April 1, 2021. At the time of purchase, the equipment is expe please explain how you get depreciation expense and accumulated depreciation
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Answer #1

Journal entry

No Date General Journal Debit Credit
1 Apr 01 Equipment 50400
Cash 50400
2 Dec 31 Depreciation expense (600*9) 5400
Accumulated depreciation-equipment 5400

2) Balances :

Depreciation expense = $5400

Accumulated depreciation-equipment = $5400

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