Appearsjustaftertheaccountitoffsetsequipmentonthebalan

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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 Depreciation Expense Debit Accum Depr40 40 Accumulated Depreciation Credit Debit Credit Dep Exp40 Bal b/d40 Chapter 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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