6. Machinery purchased January , 2015 for $49,000 was expected last for 40 years and would be worth $1,000 at that time. The company is using the straight-line method of amortization. What is the entry for May 31st. 2015
7. Office Equipment purchased for $30,000 January 1st, 2015 is amortized at the rate of 20% per year. The accumulated amortization up to this point was $500. What is the entry for February 28th 2015?
8. A truck purchased for $20.000 has accumulated amortization of $6,000 on January 1st and is amortized at a rate of 10% What's the entry for 6 month period ending June 30th?
How do I make an adjusting entry for this
- olliverLv 61 month ago
Depreciation = (Cost – Salvage Value) / Useful Life
Depreciation = (49000-1000)/40 = 1200 each year
DR: Depreciation expense 1200
CR: Accumulated depreciation 1200