16.7 Journal entries for depreciation

VCE Accounting Unit 4

1. 16.7 journal entries for depreciation

2. The General Journal entries required for reducing balance depreciation are the same as for straight-line depreciation 16.7 journal entries for depreciation Debit Credit Expenses   Depreciation [E] Debit Credit Expenses   Debit Credit Expenses   Debit Credit Negative Asset   Accumulated Depreciation [-A] Debit Credit Negative Asset   Debit Credit Negative Asset  

3. 16.7 journal entries for depreciation 2015 2016 2017 Depreciation $2,000 Depreciation $2,000 Depreciation $2,000 Debit Credit Negative Asset   Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2000 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000 Debit Credit Expenses   Depreciation [E] 31 Dec 2019 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Straight-line depreciation Debit Credit Expenses   Depreciation [E] 31 Dec 2015 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Debit Credit Negative Asset   Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2000 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2015 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2000 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2016 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2016 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2017 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2000 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000

4. 16.7 journal entries for depreciation 2015 2016 2017 Depreciation $2,200 Depreciation $1,900 Depreciation $1,500 Debit Credit Negative Asset   Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2000 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000 Debit Credit Expenses   Depreciation [E] 31 Dec 2019 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Reducing balance depreciation Debit Credit Expenses   Depreciation [E] 31 Dec 2015 Acc. Depreciation – Vehicle 2200 31 Dec 2015 Depreciation – Vehicle 2000 Debit Credit Negative Asset   Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2200 31 Dec 2016 Depreciation – Vehicle 2000 31 Dec 2017 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2015 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2200 31 Dec 2016 Depreciation – Vehicle 1900 31 Dec 2017 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2016 Acc. Depreciation – Vehicle 1900 31 Dec 2015 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2016 Acc. Depreciation – Vehicle 2000 31 Dec 2015 Depreciation – Vehicle 2000 Depreciation [E] 31 Dec 2017 Acc. Depreciation – Vehicle 1500 31 Dec 2015 Depreciation – Vehicle 2000 Accumulated Depreciation [-A] 31 Dec 2015 Depreciation – Vehicle 2200 31 Dec 2016 Depreciation – Vehicle 1900 31 Dec 2017 Depreciation – Vehicle 1500

5. 16.7 journal entries for depreciation General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,000 Accumulated Depreciation – Vehicle [-A] 2,000 Vehicle depreciated for 12-months using reducing balance method (Memo 1) Depreciation – Vehicle [E] Accumulated Depreciation – Vehicle [-OE] Debit Credit Expenses   Debit Credit Negative Asset   General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,000 Accumulated Depreciation – Vehicle [-A] 2,000 Vehicle depreciated for 12-months using reducing balance method (Memo 1) General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,000 Accumulated Depreciation – Vehicle [-A] 2,000 Vehicle depreciated for 12-months using reducing balance method (Memo 1) General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,000 Accumulated Depreciation – Vehicle [-A] 2,000 Vehicle depreciated for 12-months using reducing balance method (Memo 1) Depreciation – Vehicle [E] 31 Dec 15 Accumulated dep’n – Vehicle 2200 Debit Credit Expenses   General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,200 Accumulated Depreciation – Vehicle [-A] 2,000 Vehicle depreciated for 12-months using reducing balance method (Memo 1) Accumulated Depreciation – Vehicle [-OE] 31 Dec 15 Depreciation – Vehicle 2200 Debit Credit Negative Asset   General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,200 Accumulated Depreciation – Vehicle [-A] 2,200 Vehicle depreciated for 12-months using reducing balance method (Memo 1) General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,200 Accumulated Depreciation – Vehicle [-A] 2,200 Vehicle depreciated for 12-months using reducing balance method (Memo 1) Use a separate depreciation ledger for each Asset

6. 16.7 journal entries for depreciation General Journal Date Account DEBIT CREDIT DEBIT CREDIT 31 Dec 2015 Depreciation – Vehicle [E] 2,200 Accumulated Depreciation – Vehicle [-A] 2,200 Vehicle depreciated for 12-months using reducing balance method (Memo 1) Narration: Type of asset (e.g. “vehicle”) Periods depreciated (e.g. 12-months) Method of depreciation (e.g. “reducing balance”) Memo #

7. task In-class Homework SQ7 X Ex16.3 X Ex16.4 X Ex16.5 X Ex16.6 X Ex16.7 X