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Record depreciation on the remaining truck it has an estimated residual value of 15000 and estimated useful life of eight years?
Wiki User
∙ 11y ago
James' mom purchased a new truck for $39,310 four years ago. James, who is a mechanic, estimated that the truck's present value is $25,250. What is her depreciation? Formula: Depreciation = Purchase Price - Today's Value/Number of Years Owned
Wiki User
∙ 11y ago
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How do you record amortization expense for machinery and truck?
machinery 750 000...accum. amort. machinery 340 000truck 120 000...accum amort. truck 40 0001. remaining useful like 8 yrs; estimated residual $110 0002. remaining useful life 4 yrs; estimated residual $30 000
The adjusting entry to record depreciation of equipment is?
DR. Depreciation Expense XX Cr. Accumulated Depreciation - Equipment XX
How do you record depreciation in a journal entry?
[Debit] Depreciation Account [Credit] Assets Account
How do you record annual depreciation and accumulated depreciation?
[Debit] Depreciation expense[Credit] Accumulated depreciationAfter that depreciation is shown as part of income statement while accumulated depreciation goes to balance sheet.
The journal entry to record depreciation expense consists of a credit to Accumulated Depreciation and a debit to the asset being depreciated?
Debit is to depreciation expense.
What is the entry to record depreciation expense?
There are two entries to record Depreciation Expense. Say we are depreciating a TruckDebit Depreciation Expense - Equipment TruckCredit Accumulated Depreciation - Equipment TruckAt the end of the Accounting Cycle when the books are closed Depreciation Expense will be closed out, Accumulated Depreciation will not be. It remains on the books as long as the item being depreciated is in use and still listed as an Asset.
How do you write a journal entry for a stolen company vehicle?
Assuming that the stolen company vehicle is not covered by an insurance. Determine the remaining book value. You don't record the depreciation but instead you have to write it off or simply record the remaining book value as loss. Then record the fixed asset account as credit. The loss is treated like an expense account.
How to add depreciation to asset in quickbookS?
Journal entry is required for depreciation in quickbooks as well as FAS for peachtree also can be used to automatically record depreciation entries
What are the journal entries to record depreciation of factory equipment?
dr factory overhead and cr accum depreciation-equip
Do non-profits need to record depreciation?
Non-profit organizations should record depreciation because it is a cost of doing business. Because there are no tax advantages to the non-profit, many non-profits (NPOs) do not record depreciation. Also, because it is a non-cash expense, many NPOs do not record it. By recording depreciation, an NPO will build its equity position. If depreciation is budgeted, cash balances will increase, as there will be income to offset the expense, but there will be no cash out-flow. In the long run, the NPO will build cash reserves to replace assets, rather than having to do special fund-raising for major purchases.
Failure to record depreciation at year end will result in an?
overstating total assets.
Why is the calculation of depreciation based on estimated?
First of all we must have a clear belief that, Depreciation must always be estimated, it can never have a fixed value. Therefore the only way is to predict it. Even when we say we are calculating it, our calculation is our prediction -which can be proved to be correct and wrong too. But even so the calculation of depreciation itself is very important, if we don't calculate it , our non-current assets will be inflated in the balance sheet. Which means that our balance won't be accurate when the point of making financial statements is to have an accurate record.
