Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Answer:
$1,875
Explanation:
Given that,
Amount of note receivable = $50,000
Time period = 6 month
Interest rate = 9%
Interest amount:
= Principle amount × Interest rate × Time period
= $50,000 × 0.09 × (6/12)
= $2,250
Interest Accrued from 1 August to 31 December :
= (Interest amount ÷ 6 months) × 5 months
= ($2,250 ÷ 6 months) × 5 months
= $375 × 5 months
= $1,875