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i need help with the requirement 3 On August 1, Detroit Gold Exchange paid cash of $57,600 for computers that are expected to remain useful
i need help with the requirement 3
On August 1, Detroit Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero Read the requirements Requirement 1. Calculate the amount of depreciation for the month of August using the straight-line depreciation method, Begin by selecting the labels, than enter the amounts and compute the amount of depreciation for the month of August. (Abbreviation used; Aco. Depreciation - Accumulated Depreciation Enter a "0" for any zero balances.) Cost Residual Value Useful Life 12 months = Straight-line depreciation 57,600 ) + 12 months = $ 1,600 Requirement 2. Record the adjusting entry for depreciation on August 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Date Debit Accounts and Explanation Credit 1,600 Aug 31 Depreciation Expense-Computer Equipment Accumulated Depreciation-Computer Equipment 1,600 To record depreciation on computer equipment Requirement 3. Post the purchase of August 1 and the depreciation on August 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation--Computer Equipment, and Depreciation Expense-Computer Equipment. Show their balances at August 31. (Use dates as posting references to post the transactions. Use a "Bal" posting reference to show the ending balance of each account.) Requirements 1. Calculate the amount of depreciation for the month of August using the straight-line depreciation method. 2. Record the adjusting entry for depreciation on August 31. 3. Post the purchase of August 1 and the depreciation on August 31 to T-accounts for the following accounts: Computer Equipment, Accumulated DepreciationComputer Equipment, and Depreciation Expense Computer Equipment. Show their balances at August 31. 4. What is the computer equipment's book value at August 31? Print Done On August 1, Detroit Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Read the equitement Accounts and Explanation Depreciation Expense-Computer Equipment Accumulated Depreciation Computer Equipment Date Debit Credit Aug. 31 1,600 1,600 To record depreciation on computer equipment Requirement 3. Post the purchase of August 1 and the depreciation on August 31 to T-accounts for the following accounts Computer Equipment, Accumulated Depreciation-Computer Equipment, and Depreciation Expense - Computer Equipment Show their balances at August 31. (Use dates as posting references to post the transactions. Use a "Bal" posting reference to show the ending balance of each account.) Computer Equipment Accumulated Depreciation Computer Equipment Depreciation Expense-Computer Equipment Step by Step Solution
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