This video includes an example of buying an asset on credit. th-cam.com/video/PSDvzUwdYRo/w-d-xo.html Also, if you'd like an entire financial accounting playlist for free you can check out my website www.edspira.com/index-financial-accounting/ Wishing you the best!
*Hello, if the machine is not sold over its 5-year life period, so that its residual value becomes $0.00 at the end of the 5 years, what entries are then passed to close out the Accumulated Depreciation Account? Thank you.*
@@bigrhody58 Thank you, I gather that if the machine is retired at the end of its useful life, the Journal entries would be:Debit Accumulated Depreciation & Credit Machine Account.Is that correct?Thank you.
@@ivornworrell I would say none, if the machine is in use then it remains with a 100,000 acc dep balance in the contra asset account and the asset account retains it's 100,000 balance. When you dispose of the machine, then you would reverse the transactions. And if you sell it after the device is fully depreciated, then all of the money you receive, less expenses to move would go into gains.
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The relationship between the income statement and the balance sheet is super interesting. Nice vid.
LOL Death by Donut, "Helping people live healthier lives." 😂
Finally i understand accounting ! thank you sir
Most welcome!
Thank you
You're welcome!
what if you're depreciating a machine that adds to inventory? is it different then?
What if we buy assest on credit
This video includes an example of buying an asset on credit.
th-cam.com/video/PSDvzUwdYRo/w-d-xo.html
Also, if you'd like an entire financial accounting playlist for free you can check out my website www.edspira.com/index-financial-accounting/
Wishing you the best!
@@Edspira thankyou
*Hello, if the machine is not sold over its 5-year life period, so that its residual value becomes $0.00 at the end of the 5 years, what entries are then passed to close out the Accumulated Depreciation Account? Thank you.*
None until it is retired, disposed or sold.
@@bigrhody58 Thank you, I gather that if the machine is retired at the end of its useful life, the Journal entries would be:Debit Accumulated Depreciation & Credit Machine Account.Is that correct?Thank you.
@@ivornworrell I would say none, if the machine is in use then it remains with a 100,000 acc dep balance in the contra asset account and the asset account retains it's 100,000 balance. When you dispose of the machine, then you would reverse the transactions. And if you sell it after the device is fully depreciated, then all of the money you receive, less expenses to move would go into gains.
@@Axrover Understood.PS, I have a one-year backlog of my TH-cam emails, which is why I'm replying only now!
@Fabian Leonard Len, I really dont care, thats btwn u & ur "girlfriend", it really has nothing 2do with me