Question

Office Equipment has a balance of $9,000. The equipment has a useful life of 3 years and a salvage value of $3,000. At the end of the year, how is the adjusting entry for depreciation recorded on a multi-column trial balance worksheet?

Answer 1

Debit Credit

Depreciation $2,000

Accumulated depreciation $2,000

Step-by-step explanation:

The formula for calculating the depreciation of the office equipment is given below:

Depreciation=(cost of equipment-salvage value)/useful life

In this question,

cost of equipment=$9,000

Salvage value=$3,000

useful life=3 years

Depreciation=(9000-3000)/3=$2,000

The adjusting entry which shall be recorded in respect of the above calculated depreciation is given below:

Debit Credit

Depreciation $2,000

Accumulated depreciation $2,000