Debit Assets account and credit Capital Account
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
Type your answer here... par value of the stock
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
If it's a fixed asset, it's treated as a gain. The amount of gain is booked in the "Gain on Sale of Assets" revenue account (or something similar). The typical entry would be: Debit Cash (or Accounts Receivable) Credit Fixed Assets (or whatever account held the asset you're selling) Debit Accumulated Depreciation (if your asset had any A/D) Credit Gain on Sale If you're talking about selling inventory, that's a different matter.
Journal entry for removal cost: Debit Removal cost 200 Credit Cash 200
[Debit] Cash (if any) xxxx [Debit] Accumulated depreciation xxxx [Debit] Loss on disposal of asset (if any) xxxx [Credit] Asset account xxxx [Credit] Profit on disposal of asset(if any)xxxx
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
Type your answer here... par value of the stock
To capitalize development costs, debit the Development Costs asset account for the amount capitalized and credit the Cash or Accounts Payable account if payment was made. This allows the costs to be spread out over the useful life of the asset rather than expensing them immediately.
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
The journal entry for purchasing software involves debiting the software asset account to reflect the cost of the software and crediting the cash or accounts payable account depending on the method of payment. This entry recognizes the increase in assets due to the software purchase and the corresponding decrease in cash or increase in liabilities.
Accumulated depreciation is the amount of a long-term's asset's cost that has been allocated to depreciation since the time the asset was acquired.
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
Option B is correct one and that is the portion of the asset;s cost that has not yet been charged to expense.
Depreciation expense reduce the cost of asset through income statement for the useful life of asset and accumulated depreciation account is contra account for asset account in balance sheet to show the total amount of depreciation charged.