Julio bought an equipment worth 20,000.

With an estimated useful life of 5 years and a

salvage value of 2,000. Give the adjusting
entry on Dec. 31.
Cost = 20,000
SV – (2,000)
DC – 18,000
EUL – 5 years
Depreciation – 3,600
Dec. 31 – Depreciation Expense – 3,600
Accumulated Depreciation – 3,600
To record the Depreciated amount
Bought a building worth 1,000,000 with an
estimated useful life of 12 years and a salvage
value of 360,000. Give the adjusting entry on
Dec. 31, 2018
Cost – 1,000,000
SV – 360,000
DC – 640,000
EUL – 12
Annual Depreciation – 53,333.33
Dec. 31 – Depreciation Expense – 53,333.33
Accumulated Depreciation – 53,333.33