On January 1, 2025, a company acquired equipment for $190,000. Residual value was estimated to be $20,000. The equipment can be used 50,000 machine hours or a useful life of four years. Actual usage of the equipment was recorded as 3,000 hours for the first year. What is the journal entry for depreciation expense for the first year calculated by the units-of-production method? O Accumulated Depreciation - Equipment Depreciation Expense - Equipment O Depreciation Expense - Equipment Accumulated Depreciation - Equipment O Depreciation Expense - Equipment Accumulated Depreciation - Equipment O Accumulated Depreciation - Equipment 10,200 50,000 10,200 50,000 10,200 50,000 10,200
On January 1, 2025, a company acquired equipment for $190,000. Residual value was estimated to be $20,000. The equipment can be used 50,000 machine hours or a useful life of four years. Actual usage of the equipment was recorded as 3,000 hours for the first year. What is the journal entry for depreciation expense for the first year calculated by the units-of-production method? O Accumulated Depreciation - Equipment Depreciation Expense - Equipment O Depreciation Expense - Equipment Accumulated Depreciation - Equipment O Depreciation Expense - Equipment Accumulated Depreciation - Equipment O Accumulated Depreciation - Equipment 10,200 50,000 10,200 50,000 10,200 50,000 10,200
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:On January 1, 2025, a company acquired equipment for $190,000. Residual value was estimated to be $20,000. The equipment can be used 50,000 machine
hours or a useful life of four years. Actual usage of the equipment was recorded as 3,000 hours for the first year. What is the journal entry for depreciation
expense for the first year calculated by the units-of-production method?
Accumulated Depreciation - Equipment
Depreciation Expense - Equipment
Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
Depreciation Expense - Equipment
Accumulated Depreciation - Equipment
Accumulated Depreciation - Equipment
Depreciation Expense - Equipment
10,200
50,000
10,200
50,000
10,200
50,000
10,200
50,000
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