Answered

ACCT 167 - Computer Equipment

Debit - 22,400 ;

ACCT 163 - Office Equipment

Debit - 8,000

DThe computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
EThe office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.

WHAT IS THE JOURNAL ENTRY FOR D & E????? I have the correct accounts, I just can't figure out the amounts....


d Depreciation expense—Computer equipment

Accumulated depreciation—Computer equipment


e Depreciation expense—Office equipment

Accumulated depreciation—Office equipment

Verified Answer :

taskmasters

I am assuming the that the amount posted are the costs of the equiptments.

Computer system:
Cost : 22,400
Life usage : 4 years
Depreciation : 22,400 / 4 = 5,600

Office Equipment:
Cost : 8,000
Life Usage: 5 years
Depreciation : 8,000 / 5 = 1,600 
                                                          DEBIT             CREDIT

d) Depreciation Expense - C.E.        5,600
                     Accumulated Depreciation - C.E.         5,600 

e) Depreciation Expense - O.E.        1,600          
                    Accumulated Depreciation - O.E.          1,600

d. The depreciation expense-computer equipment will be debited, and accumulated depreciation will be credited with $5,600.

e. The depreciation expenses-office equipment will be debited, and accumulated depreciation will be credited with $1,600.

Further Explanation:

Depreciation:

Depreciation refers to the allocation of the cost of the physical asset over the useful life of the asset. The depreciation is a non-cash expense of the business. The value of the asset decreases as the business uses the asset for the operating activities. The normal wear and tear in the value of the asset are recorded as the depreciation. The depreciation can be calculated as follows:

\(\begin{aligned}\text{Annual deprecitation}&=\frac{\text{Purchase value}-\text{Salvage value}}{\text{Useful life of the asset}}\end{aligned}\)

Journal entry for the depreciation of computer system and office equipment:

The depreciation expense-computer equipment will be debited, and accumulated depreciation will be credited with $5,600.

The depreciation expenses-office equipment will be debited, and accumulated depreciation will be credited with $1,600.

Working notes:

Calculate the annual deprecation for computer depreciation:

\(\begin{aligned}\text{Annual deprecitation-Computer Equipment}&=\frac{\text{Purchase value}-\text{Salvage value}}{\text{Useful life of the asset}}\\&=\frac{\$22,400-\$0}{4}\\&=\$5,600\end{aligned}\)

Calculate the annual depreciation on office equipment:

\(\begin{aligned}\text{Annual deprecitation-Office Equipment}&=\frac{\text{Purchase value}-\text{Salvage value}}{\text{Useful life of the asset}}\\&=\frac{\$8,000-\$0}{5}\\&=\$1,600\end{aligned}\)

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Answer Details:

Grade: Middle school

Chapter: Depreciation

Subject: Accounting

Keywords:  computer, system, acquired, October, expected, have, four-year, life, salvage, value, office, equipment, acquired, October 1, five-year life, no, salvage value.

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