You have a depreciable asset as follows: Equipment purchased for $100,000 Useful life is 10 years The equipment has no salvage value Annual depreciation expense is calculated as (historical cost- salvage value)/useful life (100,000)/10 = $10,000 annual depreciation expense 1.) What is the Journal Entry to record this annual depreciation expense? (Remember one DR and one CR account.) 2.) Which financial statement(s) does this journal entry impact?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You have a depreciable asset as follows:
Equipment purchased for $100,000
Useful life is 10 years
The equipment has no salvage value
Annual depreciation expense is calculated as
(historical cost- salvage value)/useful life
(100,000)/10 = $10,000 annual depreciation expense
1.) What is the Journal Entry to record this annual depreciation expense? (Remember
one DR and one CR account.)
2.) Which financial statement(s) does this journal entry impact?
Transcribed Image Text:You have a depreciable asset as follows: Equipment purchased for $100,000 Useful life is 10 years The equipment has no salvage value Annual depreciation expense is calculated as (historical cost- salvage value)/useful life (100,000)/10 = $10,000 annual depreciation expense 1.) What is the Journal Entry to record this annual depreciation expense? (Remember one DR and one CR account.) 2.) Which financial statement(s) does this journal entry impact?
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