AccountingBLOCK

bizark · 03-13-2008, 08:11 PM

Can anyone please check my work for the adjusting entries for depreciation?

Truck was acquited on 7/1/98 for $162,000. 6 yrs useful life, salvage value $18,000, Straight-line method. On 1/1/01 truck was overhauled for $15,000 which extended the useful life to 6 yrs. In calculating depreciation expense is calculated on a monthly basis. Prepare adjustment entries for January 1, 2001 and December 31, 2001.

My calculations are:
162,000 - 60,000 (A/D) + 15,000 = 117,000 (book value) - 18,000 = 99,000 (adjusted cost to depreciate) / 66 months remaining to depreciate = 18,000/year

12/31/01 Dr Depreciation expense 18,000

Cr Accumulated Depreciation 18,000

I am not sure what entry to record for 01/01/01... Please help!!!

flexdeck · 03-13-2008, 08:15 PM

12/31/2001

Cost 162,000 (Depreciated todate, 30months or 42 months remains)
SV (18,000)
Allow (60,000)
BV & ;nbs p; 84,000
Eng 15,000 (Extends life 72 months)
Depr
value 99,000 (remaining life new basis, 66months)

Deprn 99,000/114months

1/1/01

144,000/42months.

Jan 1 is a holiday. lol

03-13-2008, 08:11 PM	#1 (permalink)
bizark Status: Getting feet wet Join Date: Mar 2008 Location: USA Posts: 39 Credits: 623	Help with some adjusting entries Can anyone please check my work for the adjusting entries for depreciation? Truck was acquited on 7/1/98 for $162,000. 6 yrs useful life, salvage value $18,000, Straight-line method. On 1/1/01 truck was overhauled for $15,000 which extended the useful life to 6 yrs. In calculating depreciation expense is calculated on a monthly basis. Prepare adjustment entries for January 1, 2001 and December 31, 2001. My calculations are: 162,000 - 60,000 (A/D) + 15,000 = 117,000 (book value) - 18,000 = 99,000 (adjusted cost to depreciate) / 66 months remaining to depreciate = 18,000/year 12/31/01 Dr Depreciation expense 18,000 Cr Accumulated Depreciation 18,000 I am not sure what entry to record for 01/01/01... Please help!!!

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03-13-2008, 08:15 PM	#2 (permalink)
flexdeck Status: n00b Join Date: Mar 2008 Posts: 24 Credits: 339	12/31/2001 Cost 162,000 (Depreciated todate, 30months or 42 months remains) SV (18,000) Allow (60,000) BV & ;nbs p; 84,000 Eng 15,000 (Extends life 72 months) Depr value 99,000 (remaining life new basis, 66months) Deprn 99,000/114months 1/1/01 144,000/42months. Jan 1 is a holiday. lol

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