Question

Saved Required information Knowledge Check 01 On December 29, 2020, Patel Products, Inc, sells a delivery van that cost $20,000 The equipment had accumulated depreciation of $16,000 at December 31, 2019. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop- down menus and entering the dollar amounts in the debit or credit columns View transaction fist Journal entry worksheet < On December 29, 2020, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2019. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation Note: Enter debits before credits Date General Journal Debit Credit Dec 29 Record entry Clear entry View general Journal

Answer 1

Accumulated depreciation upto December 31 of 2019 = $ 16,000.

Annual depreciation = $ 2,000.

So the entry as on December 29 of 2020 will be.

Date	Accounts	Debit	Credit
Dec 29	Depreciation expense	$ 2,000
	To Accumulated Depreciation		$ 2,000
	( recording depreciation of asset)

SUMMARY:

So recording depreciation expense will increase the accumulated depreciation by $ 2,000 and balance in Accumulated Depreciation now will be $18,000.