computer equipment beginning balance is 20,000 working on the adjusted general journal and the scenario is the computer has a 4 year life with no salvage value not sure how to log this
To log the depreciation of the computer equipment in the adjusted general journal, you can follow these steps:
1. Determine the annual depreciation expense: To calculate the annual depreciation expense, you need to know the useful life and the initial cost of the computer equipment. In this case, the computer has a useful life of 4 years and no salvage value. Therefore, the annual depreciation expense can be calculated using the straight-line depreciation method as follows:
Annual Depreciation Expense = (Initial Cost - Salvage Value) / Useful Life
Since there is no salvage value, the equation simplifies to:
Annual Depreciation Expense = Initial Cost / Useful Life
2. Calculate the annual depreciation expense: Since you mentioned that the beginning balance of the computer equipment is $20,000, you can use this amount as the initial cost. Therefore, the annual depreciation expense will be $20,000 / 4, which equals $5,000.
3. Record the journal entry: To log the depreciation in the adjusted general journal, you would make the following entry:
Depreciation Expense $5,000
Accumulated Depreciation $5,000
This entry recognizes the expense (Depreciation Expense) and reduces the value of the asset (Accumulated Depreciation).
Remember to consult with your accountant or finance department to ensure you are following your organization's specific accounting policies and procedures.