Unformatted text preview: ournal entry required at Oct. 31st. The equipment has a $200 salvage value.
([$5,000- $200 salvage value] / 5 yrs / 12 months = $40) Jan. 31 Depreciation expense 40 Accumulated depreciation
Accum Depr40 40
Accumulated Depreciation Credit Debit Credit
Dep Exp40 Bal b/d40
3-23 LO 5
LO Prepare adjusting entries for deferrals.
Prepare Adjusting Entries for “Prepaid Expenses”
Adjusting Entries for “Prepaid Expenses”
Depreciation (Statement Presentation)
Accumulated Depreciation—is a contra asset account.
Appears just after the account it offsets (Equipment) on the balance sheet. Office equipment $5,000 Less: Accumulated depreciation-Office Equipment Chapter
3-24 LO 5
LO 40 $4,960 Prepare adjusting entries for deferrals.
Prepare Adjusting Entries for “Unearned Revenues”
Adjusting Entries for “Unearned Revenues”
Receipt of cash that is recorded as a liability because the revenue has not been earned.
Cash Receipt Revenue Recorded BEFORE Unearned revenue...
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- Spring '11
- Generally Accepted Accounting Principles, Lo, Pioneer Advertising, PIONEER ADVERTISING AGENCY INC