Answer:
December 31
Debit : Depreciation $1,800
Credit : Accumulated Depreciation $1,800
Explanation:
Straight line method charges a fixed amount of depreciation based on the formula :
<em>Depreciation Expense = Cost - Salvage Value ÷ Estimated Useful Life</em>
Depreciation Expense = ($10,000 - $1,000) ÷ 5 = $1,800
Answer:
No it ain't nothing wrong with not speaking to them but make sure there's always communication
Answer:
The journal entry to record the reduction in value would be:
Account Title Debit Credit
Loss on Impairment 11,700
Debt Investments (Available-for-Sale) 11,700
$76,700 - $65,000 = 11,700
In this case, a loss has occurred and the individual security should be written down. If Flint Co. has already recognized an unrealized holding loss—equity, an additional entry is needed to reverse this amount as well as eliminate the fair value adjustment (available-for-sale) account.
