A hotel and country club bought a lawn mower on 1st January 2012 for $10,000. It has been estimated that the lawn mower will be sold off for a salvage value of $2,000 after four years. If the hotel uses the straight line depreciation method, what is the accounting entry to record the lawn mower's depreciation for the hotel's year ending 31 March 2012:
A) Debit Accumulated Depreciation $625; Credit Depreciation Expense $625.
B) Debit Depreciation Expense $625; Credit Accumulated Depreciation $625.
C) Debit Depreciation Expense $500; Credit Accumulated Depreciation $500.
D) Debit Accumulated Depreciation $500; Credit Depreciation Expense $500.
E) None of the above.
Correct Answer:
Verified
Q18: Which of the following statements about the
Q19: The Sydney Jazz Festival company made an
Q20: At the end of its financial year
Q21: Which of the following accounts will have
Q22: Jo Smith earned a salary of $540
Q24: The Sea Breeze Hotel and Golf club
Q25: The Iconic Hotel has an investment of
Q26: The Snow Drift ski resort pays its
Q27: A year end adjusted balance on a
Q28: The Snow Drift ski resort pays its
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents