Factors that Determine Depreciation Expense a)Initial Cost $24, 000 minus b Estimated Residual Value $2,000 equals Depreciable Cost $22,000 divided by ⊙ Estimated Useful life 5 years equals Periodic Depreciation Expense $4, 400 per year c9-11
C9 - 11 Periodic Depreciation Expense $4,400 per year equals c Estimated Useful Life 5 years divided by Depreciable Cost $22,000 equals Factors that Determine Depreciation Expense b Estimated Residual Value $2,000 minus a Initial Cost $24,000
Recording Depreciation A Purchase equipment for $24, 000. Estimated residual value is $2,000 and useful life is 5 years B) Record straight-line depreciation for first year. General Ledger General Journal Description Debit Credit Equipment quipment 24.000 A)24000 A Cash 24.000 Accum Depreciation B Depreciation Expense c9-12
C9 - 12 Recording Depreciation General Journal Description Debit Credit General Ledger Equipment 24,000 Cash 24,000 Equipment 24,000 A A Accum. Depreciation Depreciation Expense Record straight-line depreciation for first year. B B Purchase equipment for $24,000. Estimated residual value is $2,000 and useful life is 5 years. A
Recording Depreciation A Purchase equipment for $24, 000. Estimated residual value is $2,000 and useful life is 5 years B) Record straight-line depreciation for first year. General Ledger General Journal Description Debit Credit Equipment quipment 24.000 A)24000 A Cash 24.000 Accum Depreciation Depreciation Expense B) Accum Depreciation 4,400 4,400 Depreciation Expense c9-13
C9 - 13 Record straight-line depreciation for first year. General Journal Description Debit Credit General Ledger Equipment 24,000 Cash 24,000 Depreciation Expense 4,400 Accum. Depreciation 4,400 Equipment 24,000 A B A Accum. Depreciation Depreciation Expense B Recording Depreciation Purchase equipment for $24,000. Estimated residual value is $2,000 and useful life is 5 years. A
Recording Depreciation A Purchase equipment for $24, 000. Estimated residual value is $2,000 and useful life is 5 years B) Record straight-line depreciation for first year. General Ledger General Journal Description Debit Credit Equipment quipment 24.000 A)24000 A Cash 24.000 Accum Depreciation Depreciation Expense B) Accum Depreciation 4,400 4,400 Depreciation Expense $24,000-$2,000 =$4400 5 years c9-14
C9 - 14 Purchase equipment for $24,000. Estimated residual value is $2,000 and useful life is 5 years. A Record straight-line depreciation for first year. General Journal Description Debit Credit General Ledger Equipment 24,000 Cash 24,000 Depreciation Expense 4,400 Accum. Depreciation 4,400 Equipment 24,000 A B A Accum. Depreciation Depreciation Expense B $24,000 - $2,000 5 years = $4,400 Recording Depreciation