Fabm 1
Fabm 1
Fabm 1
1
Adjusting Entries
Practice Exercise
1. Cost ₱ 60,000
Less: Salvage Value 6,000
Depreciable Cost ₱ 54,000
Divided by: Estimated Useful Life 10
Annual Depreciation ₱ 5,400
Divide by 12
Monthly Depreciation ₱ 450
Evaluation
1. Initial Journal Entry
Adjusting Entry
Adjusting Entry
Not Applicable
- The monthly portion was already used or expired
3. Adjusting Entry
4. Adjusting Entry
Solution:
I = prt
3
I = ₱ 300,000 x 8% x
12
3
I = ₱ 300,000 x 0.08 x
12
I = ₱ 6,000
Adjusting Entry
Solution:
1
₱ 36,000 x
12
= ₱ 3,000