Depreciation expense under Straight line method = (Cost - Salvage value) / Estimated useful life
= ($25,000 - $2,500) / 5
= $4,500
Depreciation expense for Year 1 = $4,500 * 4 / 12 = $1,500
JOURNAL ENTRY
December 31 | Depreciation expense | $1,500 | |
Accumulated depreciation | $1,500 |
The answer is $1,500 debit to depreciation expense and a $1,500 credit to accumulated depreciation.
Question 6 0.5 pts On September 1, a company purchased equipment for $25,000. The equipment's estimated...
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