Gr.11 Accounting...??

Question

acummulation- depriciation- equipment $12 505

accumulation-depriciation- truck $14 975

the transaction that occurs inthe adjusting entry is:

-if accum.-depr- equipment declines at the rate of 0.2% using the declining balance method and accum.depr-truck declines at 0.3% using the same method. what adjustments would i make in the adjustment entries?

what do i debit and what do i credit (specifically)? and by how much?

Answer 1

Equipment:

Cost $18,600

Accum. depn. $12,505

Net book value = $6,095

Depn. at 20% on reducing balance method = 0.20 x $6,095 = $1,219

Dr  Depn - Equipment $1,219

Cr  Accd depn - Equipment $1,219

Truck:

Cost $18,000

Accum. depn. $14,975

Net book value = $3,025

Depn. at 30% on reducing balance method = 0.30 x $3,025 = $907.50

Dr  Depn - Truck $907.50

Cr  Accd depn - Truck $907.50