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23 June, 02:10

Office Equipment has a balance of $9,000. The equipment has a useful life of 3 years and a salvage value of $3,000. At the end of the year, how is the adjusting entry for depreciation recorded on a multi-column trial balance worksheet?

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  1. 23 June, 05:20
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    Debit Credit

    Depreciation $2,000

    Accumulated depreciation $2,000

    Explanation:

    The formula for calculating the depreciation of the office equipment is given below:

    Depreciation = (cost of equipment-salvage value) / useful life

    In this question,

    cost of equipment=$9,000

    Salvage value=$3,000

    useful life=3 years

    Depreciation = (9000-3000) / 3=$2,000

    The adjusting entry which shall be recorded in respect of the above calculated depreciation is given below:

    Debit Credit

    Depreciation $2,000

    Accumulated depreciation $2,000
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