Question
On July 1, 20x1 Harry Company purchased a brand new car for P1, 250,000. The useful life of the car is 10 years. It is
On July 1, 20x1 Harry Company purchased a brand new car for P1, 250,000. The useful life of the car is 10 years. It is estimated that the car will be sold for P250,000 at the end of its useful life. The accounting period ends December 31, 20x1.
Required:
What is the annual depreciation?
How much depreciation expense should be recognized for the year ended December 31, 20x1?
What is the adjusting entry to record the depreciation on December 31, 20x1?
What is the book value of the machine at December 31 20x1?
What is the depreciation expense at December 31, 2x11?
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
