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This document contains 3 problems calculating depreciation of assets. Problem 1 calculates annual and monthly depreciation of equipment costing $7,200 with a salvage value of $600 and useful life of 10 years. Problem 2 calculates depreciation of a delivery truck costing $25,000 with a salvage value of $5,000 and useful life of 10 years. Problem 3 calculates depreciation of a building costing $870,000 with no salvage value and useful life of 25 years. Journal entries are provided to record monthly depreciation expenses for the assets.

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55 views

Name: - Grade & Section

This document contains 3 problems calculating depreciation of assets. Problem 1 calculates annual and monthly depreciation of equipment costing $7,200 with a salvage value of $600 and useful life of 10 years. Problem 2 calculates depreciation of a delivery truck costing $25,000 with a salvage value of $5,000 and useful life of 10 years. Problem 3 calculates depreciation of a building costing $870,000 with no salvage value and useful life of 25 years. Journal entries are provided to record monthly depreciation expenses for the assets.

Uploaded by

Techh Savvy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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NAME: ___________________________________________________________________ GRADE & SECTION: ____________________________

ADJUSTING ENTRIES 02

Problem 1 – The company purchased equipment at a cost of 7,200. The estimated salvage value of this equipment was 600, and estimated useful life is 10 years.
The annual depreciation is:
Computation: (Annual) Computation: (Monthly Depreciation)

Journal Entry: (for monthly depreciation report)

Book Value Balance Sheet entry


Cost ____ Equipment ____
Less: Accumulated Depreciation ____ Less: Accumulated Depreciation: ____
Book Value ____ _______

Problem 2 - A delivery truck was purchased for P25,000. It is estimated to last 10 years after which it shall have a value of P5,000. Compute for the depreciation.
Computation: (Annual) Computation: (Monthly Depreciation)

Journal Entry: (for monthly depreciation report)

Book Value Balance Sheet entry


Cost ____ Delivery Truck ____
Less: Accumulated Depreciation ____ Less: Accumulated Depreciation: ____
Book Value ____ _______

Problem 3 – The company purchased a building on April 1, 2011. The building cost 870,000 has an estimated 25-year life, and is not expected to have any salvage
value at the end of that time.
Computation: (Annual) Computation: (Monthly Depreciation)

Journal Entry: (for monthly depreciation report)

Book Value Balance Sheet entry


Cost ____ Building ____
Less: Accumulated Depreciation ____ Less: Accumulated Depreciation: ____
Book Value ____ _______

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