Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Adjusting Journal Entry

Bottom of Page

1 to 2 of 2

  1.  
  1.  
    Making a journal entry for depreciation using the straight line method with no residual value on Furniture that was purchased for $ 2,304. I have to record a month's depreciation expense on the furniture(48 month life)

    I believe that I would take the $ 2,304 divide it by 48 x 1 / 12 = 4.00
    Am I correct in this assumption?

    Would I credit the 4.00 to Accumulated Depreciation and Debit 4.00 to the Furniture Fixed Asset account or the Furniture Original Cost Account?
    • CommentAuthorpk
    • CommentTimeAug 7th 2009 edited
     
    The above calculation and the entry are incorrect.
    The monthly depreciation is $48.00 ($2,304/48 months)

    The J/E : Debit Depreciation Expense
    Credit Accummulated Depreciation

    Thanks
    savin.yakeep@yahoo.com
    Thankful People: mulalam, tgm603

1 to 2 of 2

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,283 Visitor Testimonials



What's on AccountingCoach.com?