Asked by Pierre Chew Seng Yaw on Jun 15, 2024
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On April 1,Year 1,Astor Corp.purchased and placed a plant asset in service.The following information is available regarding the plant asset:
Make the necessary adjusting journal entries at December 31,Year 1,and December 31,Year 2 to record depreciation for each year under the straight-line depreciation method.
Straight-line Depreciation
A technique for distributing the expense of a physical asset across its lifespan in uniform yearly sums.
Plant Asset
An asset used in the operations of a business that is not intended for sale to customers and is referred to as property, plant, and equipment (PP&E) in accounting.
Adjusting Journal Entries
Journal entries made at the end of an accounting period to update certain accounts and ensure they accurately reflect the financial status of the business.
- Utilize the straight-line, double-declining-balance, and units-of-production techniques for calculating depreciation.
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Learning Objectives
- Utilize the straight-line, double-declining-balance, and units-of-production techniques for calculating depreciation.
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