Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation. The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation. What is the amount of the depreciation expense adjustment for the month of August?

Question

Business

Logan Nelson

13 September, 17:53

Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation. The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation. What is the amount of the depreciation expense adjustment for the month of August?

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Lillie Oconnell · Answer 1

The amount of depreciation expense adjustment for the month of august is $2650.

Explanation:

First of all it is important to know what is accumulated depreciation and why it is important. Accumulated depreciation can be termed as the sum total of all the depreciation expenses that have been charged on an asset over its useful period of life. It is important because by subtracting the accumulated depreciation from the book value of the asset we get to know what is the carrying value of the asset.

Amount of depreciation expense adjustment for August =

accumulated depreciation expense at the end of august

-

accumulated depreciation expense at the end of july

= $7600 - $4950

= $2650