Answer:
Explanation:
Depreciation : Depreciation is a decrease value of the fixed assets due to wear and tear, obsolesce, etc.
In the given question, the accumulated depreciation is $720 and the asset is purchase on Dec 1 with $3,600 value
So on the date of December 31, the adjusted value would be
= $720 × 1 ÷ 12 months
= $60
As on December 1 the asset is purchased , and we have to prepared the financial statement on December 31 . So, from December 1 to December 31, it has 1 month which is not yet recorded.
Hence, the adjusted entry would be :
Deprecation Expense A/c Dr $60
To Accumulated Depreciation A/c $60
(Being adjusted entry recorded)
