aters 3 and 4 Help me On October 1, 2021, a company purchases equipment for 572,000….
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Question “aters 3 and 4 Help me On October 1, 2021, a company purchases equipment for 572,000….”
Answer
Equipment cost = $72,000
Life expectancy = 4 years
Annual depreciation = Cost of equipment/Useful Life
= 72,000/4
= $18,000
Depreciation expense for three months (Oct 1,-2021 to Dec 31, 2020) = 18,000 x 3/12
= $4,500
The following adjustment entry will be made Dec 31, 2021
Journal
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Dec 31, 2021 | Depreciation expense | 4,500 | |
Equipment – Accumulated Depreciation | 4.500 | ||
(To depreciate at the end of the year) |
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