Depreciation: Straight Line Video Lessons

Concept

# Problem: On January 1, A Company purchased an oven for $2,000. The oven was expected to last five years and has no salvage value. The adjusting entry made on December 31, to record the depreciation of the oven for one year is: a. Dr Depreciation expense 400 Cr Accumulated depreciation 400 b. Dr Depreciation expense 400 Cr Equipment 400 c. Dr Accumulated depreciation 400 Cr Depreciation expense 400 d. Dr Depreciation expense 500 Cr Accumulated depreciation 500 ###### FREE Expert Solution ###### Problem Details On January 1, A Company purchased an oven for$2,000. The oven was expected to last five years and has no salvage value. The adjusting entry made on December 31, to record the depreciation of the oven for one year is:

a. Dr Depreciation expense        400       Cr Accumulated depreciation 400

b. Dr Depreciation expense        400       Cr Equipment                         400

c. Dr Accumulated depreciation  400      Cr Depreciation expense        400

d. Dr Depreciation expense        500      Cr Accumulated depreciation  500