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Where does the accumulated amortization account in a trial balance go Would it be listed under current assets although there is no balance at first or at the bottom when making adjustments?
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∙ 11y ago
yes
Wiki User
∙ 11y ago
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Where does the accumulated amortization account in a trial balance go. Would it be listed under current assets although there is no balance at first or at the bottom when making adjustments?
yes
What type of account is the accumulated depreciation account?
It is categorized as a contra account. Essentially, it reduces the amount shown on the balance sheet for Property, Plant & Equipment (PP&E), to account for the depreciation that has accumulated over the years that the company has owned the assets. Generally, most companies show PP&E on their balance sheet as a net amount, meaning: ( Total Book Value of Assets - Accumulated Amortization )
What is the journal entry for amortization?
Debit amortization expensesCredit intangible assets
What is accumulated depreciation?
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.
What is the journal entry accumulated depreciation?
[Debit] Depreciation account [Credit] Accumulated depreciation
Why do you need the accumulated depreciation account?
Accumulated Depriciated account is kept mostly for TAX purposes but also gives you face value of your assets.
What are the examples of capital contra account?
is accumulated depreciation a contra account
Is accumulated depreciation an owner's equity account?
No. It is a contra asset account
What type of account is accumulated depreciation and how is it reported in the financial statements?
Accumulated depreciation is a contra-asset account and show in the asset section of the Balance Sheet. It is called contra-asset account because contrary to any asset account Acc. Dep. is a credit type of account. The offset of Accumulated depreciation is to Debit the expense account Depreciation.
Is it customary for the depreciation expense account and the accumulated depreciation account to be equal?
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year.
Is Accumulated depreciation account is an expense account?
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
What is an example of a contra asset account?
Accumulated Depreciation
