Principles of Accounting I Chapter 4 Notes - 1. Explain the...

This preview shows page 1 - 3 out of 3 pages.

1.Explain the purpose of adjusting entries.
2.Prepare adjusting entries to convert assets to expenses.
Question! If we do not record this type of adjusting entry will NI beoverstatedunderstated or no effect?,
a.Dep. Expense = cost/useful life72,000 / 8 years = 9,000 PER YEAR9,000/ 12 months = 750Dec. 31Dr. Depreciation Expense750Cr. Accumulated Depreciation750b.
-- What is the total depreciation expense for the month?
--What is the total accumulated depreciation at the end of year one?9000

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture