How would you appropriately put this in a journal entry?
Purchased a used computer (three years old) at Bestbuy. When new, computer cost was 7600 with the expected life of 10 years. The used cash register is estimated to have 7 year life.
Debit computer $2280
Credit cash $2280
Debit Depreciation expense $63
Credit Accumulated Depreciation $63
To appropriately put this in a journal entry, you would follow the standard format used in accounting. Here's how you can do it:
1. Start by noting the date of the journal entry at the top of the entry.
2. Begin by identifying the accounts you will be debiting and crediting. In this case, you will be debiting the Computer account and the Depreciation Expense account, and you will be crediting the Cash account and the Accumulated Depreciation account.
3. State the amounts being debited and credited for each account.
The journal entry for the given transaction would look like this:
Date: [Insert Date]
Debit: Computer $2,280
Credit: Cash $2,280
Debit: Depreciation Expense $63
Credit: Accumulated Depreciation $63
By following this journal entry format, you can accurately record the purchase of the used computer and its associated depreciation expenses.