Asked by Nathan Gerlach on May 11, 2024
Verified
If a fixed asset, such as a computer, were purchased on January 1 for $3,750 with an estimated life of three years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is a. Depreciation Expense 100\quad 100100
\quad Accumulated Depreciation 100\quad 100100
b. Depreciation Expense 1,200\quad 1,2001,200
\quad Accumulated Depreciation 1,200\quad 1,2001,200
c. Accumulated Depreciation 1,200\quad 1,2001,200
\quad Depreciation Expense 1,200\quad 1,2001,200
d. Accumulated Depreciation 100
\quad Depreciation Expense \quad\quad 100
Fixed Asset
A Fixed Asset is a long-term tangible piece of property that a company owns and uses in its operations to generate income, and not expected to be consumed or converted into cash within a year.
Straight-Line Depreciation
A plan to allocate the price of a concrete asset in consistent yearly fractions over its lifespan.
Salvage Value
The forecasted selling price for an asset once it reaches the end of its operational life.
- Prepare accurate journal entries for monthly depreciation expense under the straight-line method.
Verified Answer
SA
Learning Objectives
- Prepare accurate journal entries for monthly depreciation expense under the straight-line method.