2ndpioneeradvertisingpaid example depreciation onoct2

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Unformatted text preview: gs, equipment, and vehicles (long­lived assets) are recorded as assets, rather than an expense, in the year acquired. Companies report a portion of the cost of a long­lived asset as an expense (depreciation) during each period of the asset’s useful life (Matching Principle). Chapter 3-21 LO 5 LO Prepare adjusting entries for deferrals. Prepare Adjusting Entries for “Prepaid Expenses” Adjusting Entries for “Prepaid Expenses” Example (Depreciation): On Oct. 2nd, Pioneer Advertising paid Example (Depreciation) On Oct. 2 $5,000 for office equipment that has an expected useful life of 10 years. Show the journal entry to record the purchase of the equipment on Oct. 2nd. Oct. 2 Equipment 5,000 Cash 5,000 Equipment Debit Cash Credit Debit Cash5,000 Chapter 3-22 Credit Equi 5,000 LO 5 LO Prepare adjusting entries for deferrals. Prepare Adjusting Entries for “Prepaid Expenses” Adjusting Entries for “Prepaid Expenses” Example (Depreciation): On Oct. 2nd, Pioneer Advertising paid $5,000 for Example (Depreciation) On Oct. 2 office equipment that has an expected useful life of 10 years. Show the adjusting j...
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