What is the Adjusting Journal Entry for Depreciation and Accumulated Depreciation?
Whether a company records its depreciation monthly or yearly, an adjusting journal entry is made to adjust the balance of depreciation expense and to record the the loss of value of the asset in the...
Companies can use several different methods to calculate depreciation on Fixed Assets. The method is chosen at the time the asset is purchased and placed in service. The method generally remains the...
The Matching Principle is part of Generally Accepted Accounting Principles (GAAP). It requires that revenues and their related expenses be recorded in the same accounting period. As an example,...
The Class Life or Useful Life of a fixed asset is the number of years over which an asset can be depreciated. Class life is determined by tax law which defines a specific number of years to each type...
A Depreciation Schedule is a listing of every Fixed Asset a company owns. It includes the following for each asset: Asset Name (2015 Ford F150, Hobart Mixer, Hyster Forklift)Any identifying...
Sum of the Years Digits is an accelerated depreciation method, meaning more depreciation is expensed in the early years of the class life of an asset. To calculate depreciation using this method,...
