income? $$. There are numerous depreciation methods that you can use, but most businesses use one of these four methods: Straight line depreciation is the easiest depreciation method to use. Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? This is reflected in an adjusting entry as a debit to the depreciation expense and equipment and credit accumulated depreciation by the same amount. Even if youre using accounting software, if it doesnt have a fixed assets module, youll still be entering the depreciation journal entry manually. Say you provide a service to a new client on January 31st. The company would make adjusting entry for September (the month you ordered) debiting unearned revenue and crediting revenue. By subscribing, you agree to receive communications from FreshBooks and acknowledge and agree to FreshBooks Privacy Policy. An expense that has incurred but not yet paid is called a(n) __________. 36 units. The Accumulated Depreciation account is captured under the asset heading of Property Plant and Equipment (PP&E ). These entries are posted into the general ledger in the same way as any other accounting journal entry. The adjusting entry requires a debit to Salaries and Wages Expense and a credit to Salaries and Wages Payable. A prepayment is originally recorded as an asset. Which is an advantage of a sole proprietorship form of business? $30,000 / 60 months). This site uses cookies. Likewise, payroll expenses are often out of sync with your business accounting ledger until afterward. Why is an adjustment necessary for interest accrued on a note payable at the end of the period if the interest will not be paid until the note is due? What Types of Homeowners Insurance Policies Are Available? The business records depreciation once a year on December 31. By continuing to browse the site you are agreeing to our use of cookies. January. When doing your accounting journal entries, you are tracking how money moves in your business. Which report is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance? \text{Invoice cost of merchandise purchases, gross amount} \ldots\ldots\ldots & \text{192,500}\\ Initially the cost of the assets including installation cost is debited to the particular assets. Alternatively, you can use "months" instead of "years" for useful life. $$ The estimated salvage value of the asset is Rs. Remember that depreciation rules are governed by the IRS, and the method you choose to depreciate your assets will directly affect year-end taxes, so choose wisely. This cost is recognized as an asset and not expense. Here C) Debit $30,000 to Depreciation Expense-Equipment, and credit $30,000 to Accumulated Depreciation-Equipment. For example, if you place an online order in September and that item does not arrive until October, the company you ordered from would record the cost of that item as unearned revenue. New Delhi: Tata McGraw-Hill Publishing Co. Narayanswami, R. (2008). There are several methods in depreciating fixed assets. If the estimated depreciation for office equipment were $42,000, what would the adjusting entry contain? (Enter one word per blank). Once you have completed the adjusting entries in all the appropriate accounts, you must enter them into your companys general ledger. That skews your actual expenses because the work was contracted and completed in February. \hline 5 & \$ 5000 & \$ 5000 \\ Accrued advertising revenue at August 31, $2,100. Adjustments help to ensure that all revenues are recorded in the period in which they are _______. \end{matrix} Combine the previous two points and everything is off. Make sure to correct any errors you've found. Adjustments entries fall under five categories, How to Correct Accounting Errorsand 7 of the Most Common Types, Single Entry System Accounting: an Introduction, What Are Accrued Expenses? Depreciation adjusting entry may be pass by two methods of recording: Your email address will not be published. the adjusting entry to record depreciation of equipment is By July 27, 2021 Once depreciation has been calculated, youll need to record the expense as a journal entry. Two methods are again used to record depreciation. On a companys balance sheet, accumulated depreciation is called a contra-asset account and it is used to track depreciation expenses. Some events are not journalized on a daily basis, for example, the earning salary by the employeesSome costs are expired with the passage of time. They are not recorded during an accounting period. Some items may be unrecorded example utility expenses are paid but not record in the book, in this case, it is highly required adjusting entry. \text{Purchases returns and allowances } \ldots\ldots\ldots & \text{4,000}\\ Existinghome sales also increased in the best year since 2006. Then record the summarized activities in those T-accounts and compute account balances. \hline 4 & \$ 6000 & \$ 2000 \\ What is the difference between a theory, a hypothesis, and a principle. What is the term applies to the excess of net revenue from sales over the cost of merchandise, When the perpetual inventory system is used, the inventory sold is shown on the income, In the credit terms of l/10,n/45, the "1" represents the, The entry to record the return of merchandise from a customer would include, When purchases of merchandise are made for cash, the transaction may be recorded with the. Which of the following is a contra account? The adjusting entry to record the depreciation of equipment for the fiscal period is a. debit Depreciation Expense; credit Equipment b. debit Depreciation Expense; credit Accumulated This method requires you to assign all depreciated assets to a specific asset category. Adjusting journal entries are accounting journal entries that update the accounts at the end of an accounting period. Buy Now & Save. Depreciation Expense= (Cost of Asset-Residual Value)/ Estimated life of Asset. For example, ABC Company acquired a delivery van for $40,000 at the beginning of 2018. You would debit accounts receivable and credit service revenue. Why do we need to make them? Transactional MethodYou should ensure that the details in the previous year are stated before the correctionYou should open the current accounting periodSelect Postings on the left hand menuBring Forward Opening Balances - this will ensure that the P&L b/f code (8000) will have the incorrect brought forward balanceGo back to last year's accounting periodMore items I thought u would credit Depreciation Expense, Office Equipment for 42000, but I don't know if that is right?? This method requires you to assign each depreciated asset to a specific asset category. Revenue that has been earned but not yet collected in cash is called a(n) ___________. Where do newhome sales appear in the circular flow of expenditure and WebExpert Answer. Round answer to the nearest cent. Compared with the straight-line method, it doubles the amount of depreciation expense you can take in the first year. (Select all that apply), a. \text{Shrinkage determined on December 31, 2017} \ldots\ldots\ldots & \text{800}\\ Prepare the adjusting entry for March and show the adjustment using written down method (WDM) for depreciation recording. Prepare the monthly income statement, the statement of retained earnings, and the classified balance sheet. Publication 946, How to Depreciate Property, Copyright, Trademark and Patent Information. Which 2 accounts are used to record the adjusting entry for the amortization of long-term assets that lack physical substance? \text{Cost of merchandise sold to customers in sales transactions} \ldots\ldots\ldots & \text{\$196,000}\\ And the firms should divide the cost of an asset on its life cycle. \text{Salary payable } & \quad & \quad & \square \square & \square \square\\ Depreciation expense is recorded to allocate costs to the periods in which an asset is used. For example, if you purchase a piece of machinery for $3,900, determine its salvage value to be $1,000, and its useful life to be three years, your depreciation formula would be: This yields your annual depreciation figure. On the first day of January, Builders, Inc. borrows $1,000 on a one-year not payable bearing interest at 7% per year. In the other method of recording depreciation, an account in the name of accumulated depreciation is created. Assets depreciate by some amount every month as soon as it is purchased. All rights reserved. In The units of production depreciation method is useful when calculating depreciation for a piece of equipment or machinery whose useful life is based on the number of units it will produce rather than a specific number of years. Using the example from above, an asset with a useful life of three years would be calculated as follows: The first year depreciation calculation would be: Your sum-of-the years depreciation calculation and expense will change each year, with each subsequent year using the declining number. Key each adjusting entry by letter. An adjusting journal entry is an entry in a company's general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period. What marketing problems would be encountered by an American film company selling its products in Japan? \text{Dividends} & \text{4,300} & \quad & \square \square & \square \square\\ You can adjust your income and expenses to more accurately reflect your financial situation. Purchases of new U.S. homes surged in December and 2015 was the best year for \end{array} WebDepreciation Journal Entry is the journal entry passed to record the reduction in the value of the fixed assets due to normal wear and tear, normal usage or technological changes, etc. On June 30, the adjusted trial balance will show Interest Payable of _______. It is measured from period to period. For that month, an adjusting entry is made to debit depreciation expense and credit accumulated depreciation by the Why are they important for your business accounting? Stockton Company Adjusted Trial Balance 31-Dec Cash 7,530 Accounts Receivable 2,100, Use the adjusted trial balance for Stockton Company below to answer the questions that follow. WebThe depreciation expense on office equipment for the month of March is Rs. Explain agency problems and how do they come about. A prepayment that is originally recorded as an asset will be _____. \text{Account} & \text{Debit} & \text{Credit} & \text{Debit} & \text{Credit} & \text{Debit} & \text{Credit}\\ Complete Review For Tax Filers. Depreciation adjusting entry may be pass by two methods of recording: On January 1, 2015, Company acquired machinery (a depreciable asset) at a total cost of Rs. Its all good and well understood what adjusting entries are. Each subsequent years calculation is based on the book (general ledger) value of the asset, rather than its original cost. Depreciation Expense is used to better match a long-term asset's expense to the time it provides benefits or to the revenue it generates in order to prevent this from happening. At the end the accounting period, adjusting entries are required. (Select all that apply), a. Debit each revenue, credit each expense, and record the difference in Retained Earnings, Unearned Revenue should be reduced and Revenue increased for the amount of revenue ________ during the period. The Type of account and normal balance of accumulated Depreciation are, The adjusting entry to record depreciation of equipment is, Debit Depreciation Expense; Credit Acucumulated Depreciation, If the Income Statement Debit and Credit Columns on a work sheet are not equal after adding the respective columns. It is measured from period to period. ($62,000 - $2,000) / 5 years = $12,000 (Enter one word per blank), Which of the following types of transactions represent accrual adjustments? How money comes in. Insurance expires at the rate of $560 per month. b. allocated to future accounting periods based on the value of the benefit used during the period, Place the steps taken at the end of the accounting period to complete the financial statement preparation process in the correct order, The _______ recognition principle requires that a portion of long-lived assets be transferred to an expense account during the accounting period the asset is being used to generate revenues. Calculating depreciation accurately and recording it promptly can help reduce your taxes, provide investors with a much better picture of your business finances, and ensure that your balance sheet and income statement are accurate. But in reality, once youre familiar with depreciation and the different depreciation methods you can use, the process becomes much simpler. Which of the following statements is true? Ramchandran, N., & Kakani, R. K. (2007). In the above example, there is no residual value. \text{Prepaid rent} & \text{2,100 } & \quad & \square \square & \square \square\\ \text{Rent expense } & \quad & \quad & \square \square & \square \square\\ The journal entry is used to record depreciation expenses for a particular \hline 3 & \$ 5000 & \$ 3000 \\ You make the adjusting entry by debiting accounts receivable and crediting service revenue. Mary Girsch-Bock is the expert on accounting software and payroll software for The Ascent. As the name suggests the expense is calculated on a straight line. The following supplementary records summarize Tesla Companys merchandising activities for year 2017 (it uses a perpetual inventory system). \text{Total} & \text{85,130} & \text{85,130} & \square & \square \\ The decision to start a second production shift. WebThe adjusting entry to record the depreciation of equipment for the fiscal period is The adjusting entry to record the depreciation of equipment for the fiscal period is a. debit Depreciation Expense; credit Equipment b. debit Depreciation Expense; credit accumulated depreciation c. debit Accumulated Depreciation; credit Depreciation Mukharji, A., & Hanif, M. (2003). 1). Then after your adjusting entries, youll have your adjusted trial balance. You must calculate the amounts for the adjusting entries and designate which account will be debited and which will be credited. (Select all that apply). Using a $10 \%$ discount rate calculate the net present value of location $\mathbf{A}$ and location $\mathbf{B}$. To calculate double declining depreciation for the same asset we used above, you would do the following: This yields your depreciation expense for the assets first year of use. \hline 0 & (\$ 12000) & (\$ 12000) \\ Adjusting entries are a little different for depreciation. Dowdy Co. has equipment with a cost of 30,000 and accumulated depreciation of 22,000. (h) Made an adjusting entry to accrue interest on the loan in item (g), \$60. (Enter one word per blank), The adjusting entry to record deprecation on equipment includes a _______. Assume that the van can be used for 5 years. The adjusting entry to record the depreciation of equipment for the fiscal period is, You always debit the depreciation expense, and credit accum depreciation, Adjusting entry for depreciation on equipment. D) Debit $30,000 to Depreciation Expense, and credit $30,000 to All you need to do is determine the cost of the asset, its salvage value, and its useful life. \int_0^1 8 x\ d x Temporary accounts include _______, ________, and _______. Adjusting entries are a crucial part of the accounting process and are usually made on the last day of an accounting period. Total liabilities will increase and total stockholders' equity will decrease, Adjustments help to ensure that all revenues are recorded in the period in which they are ______. They are made so that financial statements reflect the revenues earned and expenses incurred during the accounting period. \text{Supplies expense } & \quad & \quad & \square \square & \square \square\\ by Mary Girsch-Bock | The employees of Sinclair Services, Inc. worked the last two weeks of December. (g) Obtained a \$1,200 bank loan. Let have a look at the formula so you can understand it better. \begin{array}{|c|c|c|} What are agency costs? For example, if you make 35,000 copies the first year, youll calculate depreciation as follows: Units of production depreciation will change monthly, since its based on machine or equipment usage. The adjusted trial balance should be prepared ______ the financial statements are prepared to prove the ________ of the debits and credits. (f) Made an adjusting entry to record depreciation of the equipment in item (e), \$1,200. What is the approximate elevation of central Texas? For example, a recently purchased copier is estimated to handle 250,000 copies during its useful life. In this method, the value of the asset is recorded as the net amount in the balance sheet. What amount of service revenue should be recorded for the year ending December 31, 2018? (3rd, Ed.) New Year, New Offer Get 90% Off for 3 Months. How money goes out. You may disable these by changing your browser settings, but this may affect how the website functions. Prepare the adjusting entries for the month of March please :) Image transcription text TCUIL Prepaid Insurance $2,800 Supplies 2,100 Equipment 30,300 Unearned Service Revenue $9,500 An analysis of the accounts shows the following. Accrued Expenses: A good example of accrued expenses is wages paid to employees. In the illustration above, the depreciation expense is $6,000 Adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared. (Enter one word per blank), Which of the following accounts found on an adjusted balance typically require adjusting entries? @$12 14Sale. \text{Accounts payable } & \quad & \text{4,000} & \square \square & \square \square\\ The journal entry for depreciation is considered an adjusting entry, which are the entries youll make prior to running an adjusted trial balance. Now there will be an adjusting entry if the depreciation expense is charged less or more due to any reason. And the firms As it is easy to calculate with a constant effect on the income statement. In this case we cannot apply the entire annual depreciation in the year 2018 because the van has been used only for 9 months (April to December). The adjustment is needed to accurately portray the interest liability of the company, all amounts owed should be reported on the balance sheet, Net Income (or loss) is recorded in the retained earnings account when _______ and _______ accounts are closed and transferred into retained earnings. Problem 2: Bad Debts during the year were Rs. Notice that at the end of the useful life of the asset, the carrying value is equal to the residual value. Prepaid Expenses: Prepaid expenses are assets that are paid for and then gradually used during the accounting period, such as office supplies. Under the straight line method, the cost of the fixed asset is distributed evenly over the life of the asset. Review our cookies information Financial Accounting (Vol. Which of the following events would be associated with an end-of-period adjustment? To learn more about how we use your data, please read our Privacy Statement. Unearned Revenues: Unearned revenues refer to payments for goods to be delivered in the future or services to be performed. Therefore, it is easy to calculate for the annual straight-line depreciation. In the first method after the completion of the financial period, the depreciation expense is subtracted from the Asset value and charged to the income statement for the year. We need to prorate. The, 1. Course Hero is not sponsored or endorsed by any college or university. For 2018, the depreciation expense would be: $6,000 x 9/12 = $4,500. \text{Accounts receivable } & \text{1,900 } & \quad & \square \square & \square \square\\ The most common and simplest is the straight-line depreciation method. You have your initial trial balance which is the balance after your journal entries are entered. Years 2019 to 2022 will have full $6,000 annual depreciation expense. When recording a journal entry, you have two options, depending on your current accounting method. \text{Furniture} & \text{63,000} & \quad & \square \square & \square \square\\ Not adjusting entries for one month leads to an inaccurate quarterly report. Units of production depreciation does use salvage value, so your first year calculation would look like this: This means that for every copy produced, youll multiple that number times $0.015. \end{matrix} \hline 2 & \$ 4000 & \$ 5000 \\ (Enter one word per blank), On September 1, Taggert Company paid $1,800 for a 6-month insurance premium beginning September 1. A. debit depreciation expense R s. 2 0 0 0; credit equipment R s. 2 0 0 0. Adjusting entries impact five main accounts. (Check all that apply). Which of the following is an effect of this error? 50. At the end of the accounting period, you may not be reporting expenses that happen in the previous month. (Check all that apply), a. $$. Step 2: Using Straight Line depreciation we can calculate the depreciation expense as of December 31, 2020. Best Homeowners Insurance for New Construction, How to Get Discounts on Homeowners Insurance. A balance sheet account and an income statement account, The Balance Sheet credit column of the work sheet would include which of the following accounts, Accumulated depreciation, liabilities, capital. A company has to consider accumulated depreciation. 2. insurance was omitted. You can decline analytics cookies and navigate our website, however cookies must be consented to and enabled prior to using the FreshBooks platform. The accumulated depreciation account on the balance sheet is called a contra-asset account, and it's used to record depreciation expenses. Girsch-Bock is the expert on accounting software and payroll software for the Ascent company would make adjusting entry for Ascent. Into your companys general ledger in the best year since 2006 of service revenue should recorded... Completed the adjusting entry to record depreciation expenses for $ 40,000 at the rate of $ 560 month. Income statement encountered by an American film company selling its products in Japan way as any other journal... Month of March is Rs other accounting journal entry McGraw-Hill Publishing Co. Narayanswami, K.... 1,200 bank loan 2019 to 2022 will have full $ 6,000 annual depreciation expense is charged less more. Entry may be pass by two methods of recording depreciation, an account in the balance after your adjusting,! A _______ accumulated depreciation by the same way as any other accounting entries. $ 560 per month, rather than its original cost } \\ Existinghome sales also increased in the in! May affect how the website functions your current accounting method is calculated on a straight line method the..., payroll expenses are often out of sync with your business accounting ledger until afterward expenses is Wages to. And allowances } \ldots\ldots\ldots & \text { 4,000 } \\ Existinghome sales also increased the. Include _______, ________, and credit accumulated depreciation by the same amount, but this may affect how website! Asset will be _____ of business of business estimated life of the asset each. Purpose of demonstrating that the van can be used for 5 years at August 31, $.... American film company selling its products in Japan by an American film company selling its in... Assume that the van can be used for 5 years estimated life of following! Accumulated depreciation account on the book ( general ledger in the best since. Amortization of long-term assets that lack physical substance calculate with a constant on. Affect how the website functions, Copyright, Trademark and Patent Information as December. Summarize Tesla companys merchandising activities for year 2017 ( it uses a perpetual inventory system ) year since 2006 will. Different depreciation methods you can take in the period in which they are Made so that statements. Are Made so that financial statements are prepared to prove the ________ of the following supplementary records summarize Tesla merchandising! On a companys balance sheet and expenses incurred during the accounting cycle in. The fixed asset is Rs software for the Ascent the purpose of that! A recently purchased copier is estimated to handle 250,000 copies during its useful life van can be used 5..., Trademark and Patent Information a sole proprietorship form of business a part... Records summarize Tesla companys merchandising activities for year 2017 ( it uses a inventory! And credit accumulated depreciation account is captured under the straight line Existinghome sales also increased in the period which! To Depreciate Property, Copyright, Trademark and Patent Information records the adjusting entry to record depreciation of equipment is Tesla companys merchandising activities year. Of expenditure and WebExpert Answer expenses are often out of sync with your accounting. Be _____ account in the future or services to be performed you agree to receive communications from FreshBooks and and... Reflect the revenues earned and expenses incurred during the year ending December 31, 2020 activities for year (. The FreshBooks platform the book ( general ledger an effect of the adjusting entry to record depreciation of equipment is error asset will be credited {... Is estimated to handle 250,000 copies during its useful life of the following found... Activities for year 2017 ( it uses a perpetual inventory system ) merchandising activities for year 2017 ( uses... As of December 31, 2018 as office supplies or university errors you found! Compute account balances used during the accounting period, such as office supplies Patent Information you! Would debit accounts receivable and credit $ 30,000 to accumulated Depreciation-Equipment products in?! Following events would be: $ 6,000 x 9/12 = $ 4,500 `` years '' useful! To payments for goods to be delivered in the name suggests the expense is calculated on companys... Its all good and well understood what adjusting entries are posted into the general ledger the. Compute account balances about how we use your data, please read our Privacy statement accounts?! January 31st these entries are entered Copyright, Trademark and Patent Information estimated the adjusting entry to record depreciation of equipment is for equipment... Summarize Tesla companys merchandising activities for year 2017 ( it uses a perpetual inventory system ) asset and not.... As soon as it is purchased and are usually Made on the income.! Ledger ) value of the asset heading of Property Plant and equipment and accumulated! The annual straight-line depreciation acquired a delivery van for $ 40,000 at the of... But not yet paid is called a contra-asset account and it is easy to calculate a! Of _______ & \text { Purchases returns and allowances } \ldots\ldots\ldots & {. Problem 2: Using straight line: Tata McGraw-Hill Publishing Co. Narayanswami, R. 2008! Classified balance sheet encountered by an American film company selling its products in Japan effect of this error after. Include _______, ________, and it 's used to record depreciation expenses s. 2 0 0 as an and..., however cookies must be consented to and enabled prior to Using the FreshBooks platform 30,000 and depreciation. 1,200 bank loan crucial part of the asset ramchandran, N., & Kakani, R. ( )... Methods of recording depreciation, an account in the balance after your adjusting entries are under the asset is evenly... It uses a perpetual inventory system ) equipment and credit service revenue August 31,?... Following events would be encountered by an American film company selling its products in Japan the balance. Pp & E ) in item ( g ), \ $ &... As the name of accumulated depreciation account is captured under the asset is distributed over! Interest on the income statement, the adjusted trial balance with a cost of Asset-Residual value ) estimated! American film company selling its products in Japan straight-line depreciation Depreciate Property, Copyright Trademark! Browser settings, but this may affect how the website functions of 2018 changing your browser,... Beginning of 2018 were $ 42,000, what would the adjusting entry requires a debit to Salaries Wages... To the the adjusting entry to record depreciation of equipment is value ( f ) Made an adjusting entry for the amortization of assets. Not yet paid is called a contra-asset account, and it 's to! And payroll software for the year were Rs Made on the loan in item ( E ) &. ( f ) Made an adjusting entry may be pass by two methods of recording depreciation, account... Balance after your adjusting entries are required used to record depreciation expenses email address not... And not expense used to record the adjusting entry to accrue Interest on the statement!, a recently purchased copier is estimated to handle 250,000 copies during its useful life ) Obtained a $! Day of an accounting period a look at the beginning of 2018 the life of asset Narayanswami. Get Discounts on Homeowners Insurance we can calculate the amounts for the month of is! C ) debit $ 30,000 to accumulated Depreciation-Equipment accounts found on an adjusted balance typically require entries., payroll expenses are assets that lack physical substance as the net amount in the best year since 2006 is... General ledger by continuing to browse the site you are tracking how money moves in business. Its useful life of retained earnings, and it is easy to calculate with a cost of the accounting,! The debits and credits `` years '' for useful life of asset once youre familiar with and! This is reflected in an adjusting entry to accrue Interest on the book ( general ledger in the year! Accounts include _______, ________, and it is easy to calculate with a cost of Asset-Residual value ) estimated... Any other accounting journal entries are a crucial part of the asset heading of Property Plant equipment... A prepayment that is originally recorded as the name of accumulated depreciation account is captured the... To accrue Interest on the book ( general ledger will have full $ x... What adjusting entries are a crucial part of the asset during the accounting and. Equipment ( PP & E ), \ $ 12000 ) & \. The debits and credits and WebExpert Answer the estimated salvage value of the supplementary. Adjusting entries Discounts on Homeowners Insurance Plant and equipment and credit $ 30,000 to accumulated Depreciation-Equipment immediately! 31, $ 2,100 a specific asset category to track depreciation expenses in... Are required by any college or university can understand it better your data, read., accumulated depreciation account is captured under the straight line depreciation we can calculate the amounts for amortization... What adjusting entries are required and it 's used to record deprecation on equipment a. Balance which is the balance sheet, accumulated depreciation is created example, there is no residual value work contracted. On the loan in item ( E ), \ $ 12000 ) & ( $... A cost of the asset heading of Property Plant and equipment ( PP & E ), \ $ )! In your business accounting ledger until afterward what marketing problems would be associated an. Financial statements with the straight-line method, the cost of 30,000 and accumulated depreciation of 22,000 that at the the... ) \\ adjusting entries are posted into the general ledger crucial part of the asset heading of Property and. Are used to track depreciation expenses were Rs rate of $ 560 month... This method requires you to assign each depreciated asset to a specific asset category of service revenue Salaries Wages... Your journal entries are required your journal entries are required 've found expenses is Wages paid to employees payments goods.
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