Depreciation formula:
= (Original Cost - Residual Value) / Useful Life /12 Months
= ((81600 - 0) /4) / 12
= 20400/12
= 1700
53-8 (similar to) On August 1, Hampton Gold Exchange pada 1511 for computers are expected to...
On October 1, Orlando Gold Exchange paid cash of $57,600 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero. Requirements 1. Calculate the amount of depreciation for the month of October using the straight- line depreciation method. 2. Record the adjusting entry for depreciation on October 31. 3. Post the purchase of October 1 and the depreciation on October 31 to T-accounts...