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Hi Allan,
If the UCC of equipments in jan. 1, 2017= 500$, assume depreciation amount 100$ at the end of 2017. Could you advise where the 500$ and 100$ would be recorded in the General Ledger and the Balance Sheet please?
Thanks for your time
Regards,
Ali
Hi Ali,
Record the following entry for depreciation:
Debit Depreciation Expense - $100
Credit Accumulated Amortization - $100
Depreciation expense is reported on the income statement. Accumulated amortization account is reported on the balance sheet as reduction of the capital cost of the asset ($500). The balance sheet presentation should be as follows:
- Capital Assets (net of accumulated amortization) - $400