If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage orresidual value of $150, the journal entry for the monthly expense under straight-line depreciation isa. Depreciation Expense100Accumulated Depreciation1,200Accumulated Depreciation1,200100b. Depreciation Expense1,200c. Accumulated DepreciationDepreciation Expensed. Accumulated DepreciationDepreciation Expense1,200100100O DO A

Depreciation is the wear and tear of an asset that is charged to profit and loss account under…

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Business

Accounting

100 Depreciation Expense Accumulated Depreciation a. 100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If a fixed asset, such as a computer, was purchased on January 1 for $3,750 with an estimated life of 3 years and a salvage or
residual value of $150, the journal entry for the monthly expense under straight-line depreciation is
a. Depreciation Expense
100
Accumulated Depreciation
1,200
Accumulated Depreciation
1,200
100
b. Depreciation Expense
1,200
c. Accumulated Depreciation
Depreciation Expense
d. Accumulated Depreciation
Depreciation Expense
1,200
100
100
O D
O A

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