1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
topjm [15]
3 years ago
8

Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. Debit

Depreciation expense; credit Accumulated depreciation. Debit Depreciation expense; credit Building. Debit Accumulated depreciation; credit Depreciation expense. Debit Building; credit Accumulated depreciation.
Business
1 answer:
Vlada [557]3 years ago
4 0

Answer:

Debit Depreciation expense; credit Accumulated depreciation.

Explanation:

Depreciation bis a measure of loss of value of an asset in the process of production over time. For example if a machine is purchased at $100,000, it will have a useful life expressed in years let's say 20 years, and a salvage value ( value of the asset after its useful life.

On purchase of an asset deviation is estimated per unit time for example into the example above 100,000/20= $5,000 per year.

This amount is recorded in a year as depreciation that has accumulated till the useful life of the asset is used up.

The entry involves recognising the expense (depreciation) by debiting Depreciation Expense and Crediting Accumulated Depreciation to show the value of the asset that has depreciated in that time.

You might be interested in
The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Sap's fi
Alexxandr [17]

Answer:

The GAP

a. Cost of goods sold = $10,364

b. Cash paid to suppliers = $10,409

Explanation:

a) Data and Calculations:

Selected Balance Sheet Data

        ($ millions)     2015   2014

Inventories           $1,918   $1,844

Accounts Payable  1,157      1,128

Purchases during 2015 = $10,438 million

b) Cost of goods sold:

Beginning inventory   $1,844

Purchases                   10,438

Goods available       $12,282

Ending inventory         (1,918)

Cost of goods sold $10,364

c) Accounts Payable:

Beginning balance           $1,128

Purchases                        10,438

Less ending balance          1,157

Cash paid to suppliers $10,409

3 0
3 years ago
gThe following data are available for Martin Solutions, Inc. Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,00
Vaselesa [24]

Answer and Explanation:

The computation is shown below;

For Year 1

Average inventory = (Beginning inventory + Ending inventory)÷ 2

= ($64,000 + $80,000) ÷ 2

= $72,000

Inventory turnover = Cost of goods sold  ÷ Average inventory

= $606,000 ÷ 72,000

= 8.4 times

Days in inventory = 365 ÷ Inventory turnover ratio

= 365 ÷ 8.4

= 43.5 days

For Year 2

Average inventory = (Beginning inventory + Ending inventory) ÷ 2

= ($80,000 + $72,000) ÷ 2

= $76,000

Inventory turnover = Cost of goods sold ÷ Average inventory

= $500,800 ÷ 76,000

= 6.6 times

Days in inventory = 365 ÷ Inventory turnover ratio

= 365 ÷ 6.6

= 55.3 days

3 0
3 years ago
Badger Enterprises purchased aluminum from JG Metals. When Badger Enterprises recorded this transaction, they made entries into
Leya [2.2K]
Perpetual inventory system - is the type of inventory system Badger Enterprise uses. A perpetual inventory system is when companies keep track of each individual purchase and sale of inventory continuously. If they use a periodic inventory system, they will do it periodically, or over a given point in time. 
4 0
4 years ago
Read 2 more answers
The entry to record the flow of direct labor costs into production in a job order cost accounting system is to
Nookie1986 [14]

Answer:

Debit : Work In Process Account and Credit : Salaries and Wages Payable Account

Explanation:

All manufacturing costs are accounted for in a Work in Process Account during manufacture. Therefore Debit the Work In Process Account to show accumulation of the manufacturing costs and Credit the Salaries and Wages Payable Account to show the utilization of labor.

4 0
3 years ago
The best explanation as to why direct democracy would not work well in the United States is that
Masteriza [31]

The US general population is far too diverse and the population too large.  There is bound to be issues and disagreements on almost all laws that would be passed.  With the amount of laws being passed in the state and national government nowadays, people would literally spend most of their waking hour voting rather than being useful members of the society

:)

6 0
3 years ago
Other questions:
  • Which of these portfolio items might assist Susan in answering an interviewer who asks, “What is something you did well in schoo
    7·1 answer
  • The difference between a divine command view and authoritarian view is that the authority figure is different. true or false?
    6·1 answer
  • Gross profit equals the difference between sales revenue and cost of goods sold plus operating expenses. net income and operatin
    6·1 answer
  • "Have you considered paying workers for what they produce? I found that when I paid employees by the piece, their productivity w
    13·1 answer
  • Your friend is looking for investors in a risky business venture. To convince you to participate, she is offering you a 17% rate
    15·2 answers
  • The cost of preferred stock is different from the cost of _____ because there is no maturity date on which principal must be pai
    15·1 answer
  • PLS HELP QUICK<br> I’LL MARK BRAINLIEST
    5·2 answers
  • On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following i
    6·1 answer
  • Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary pol
    11·1 answer
  • What is a common element of most budget documents in which the chief executive highlights the major issues, constraints, priorit
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!