Im a bit confused making these adjusting entries. 1).The store Fixtures cost of
ID: 2468239 • Letter: I
Question
Im a bit confused making these adjusting entries.
1).The store Fixtures cost of $ 5,000 will be depreciated over a 10-year useful life with no salvage value. Depreciation expense is $ 42 per month.
2).The painting mixing equipment cost $4,000 will be depreciated over a 5 year useful life with no salvage value. Depreciation expense is $ 67 per month.
3).The compputer paint color match equipment cost of $ 1,000 will be depreciated over a four-year useful life with no salvage value.Depreciation expesne is $21 per month.
Explanation / Answer
1) Depreciation = Cost- Salvage / Life 5000/10 = $ 500 Depreciation Expense Dr 500 To Fixture 500 2) Depreciation= 4000/5 $ 800 per year Depreciation Expense Dr 800 To Equipment 800 3) Depreciation= 1000/4 = $ 250 per year Depreciation Expense Dr 250 To Equipment 250