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anyanavicka [17]
3 years ago
11

Ariel Tax Planning Service has the following plant​ assets: Communications​ equipment: Cost, with useful life of 8​ years; Furni

ture:​ Cost, with useful life of 12​ years; and​ Computer: Cost, with useful life of 4 years. Assume the residual value of all the assets is zero and the straightline method is used. ​Ariel's monthly depreciation journal entry will include a​ ________.
a. credit to Accumulated Depreciation of $481
b. credit to Depreciation Expense of $5,772
c. debit to Accumulated Depreciation of $481
d. debit to Depreciation Expense of $5,772
Business
1 answer:
Vaselesa [24]3 years ago
3 0

Answer: a. credit to Accumulated Depreciation of $481

Explanation:

Find the monthly depreciation on all the assets;

Communications Equipment

= 9,600 / (8 years * 12 months)

= 9,600/96

= $100

Furniture

= 17,424 / (12 * 12)

= 17,424/144

= $121

Computer

= 12,480 / (4 * 12)

= 12,480/48

= $260

Add that up;

= 260 + 121 + 100

= $481

This figure will be debited to the depreciation expense account every month and credited to the Accumulated depreciation account to account for the reduction in Asset value.

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