Depreciation

Question 1

Straight Line Depreciation:

Answer 1

ACQ Cost-Sav Value/Total Useful Life

Question 2

Journal Entry for Depreciation

Answer 2

Debt: Depreciation Expense (E+ SE-) Credit: Accumulated Depreciation (XA+ A-)

Question 3

If Maintenance was on Equipment that was Depreciating, how do we journal?

Answer 3

Debt: Maintenance Expense (E+ SE-) Credit: Prepaid Maintenance (A-)

Question 4

Does maintenance and depreciation go on the same journal entry at the end of the year?

Answer 4

Yes

Question 5

How do you Journal for an equipment item sold before useful life?

Answer 5

Debt: Cash (A+) Accumulated Depreciation (Whatever has been accumulated) (A+ XA-) Credit: Equipment (A-) Credit: Gain (G+ SE+)

Question 6

What is Gain or Loss

Answer 6

The amount of money you gained when selling equip or amount of money you lost when selling equip.

Question 7

How do you calculate gain or loss?

Answer 7

(Selling Price) + (Accumulated Depreciation) - (Purchase Price)