Adjustment G - balance in the accumulated...

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Adjustment G : If depreciation expense on Mr. Green's $15,000 truck is $200 each month, he makes  a $200 adjusting entry to increase (debit) an expense account (depreciation expense–vehicles) and  to increase (credit) a contra-asset account (accumulated depreciation–vehicles).  The truck's net book value is now $14,800, which is calculated by subtracting the $200 credit 
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Unformatted text preview: balance in the accumulated depreciation–vehicles account from the $15,000 debit balance in the vehicles account. Many accountants calculate the depreciation of long-lived assets to the nearest month. Had Mr. Green purchased the truck on April 16 or later, he might not make this adjusting entry until the end of May....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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