October 30, 2016 admin

Equipment—Office Equipment & Signs—Accumulated Depreciation

Assets

EQUIPMENT—OFFICE EQUIPMENT & SIGNS—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1726

ACCOUNT EXPLANATION
Accumulated depreciation of office equipment and signs.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation of office equipment and signs SE
    Depreciation—Equipment 8760
      Equipment—Office Equipment & Signs—Accumulated Depreciation 1726
             
  Sale of typewriter for cash at a loss CR
    Cash in Bank—General 1001
    Equipment—Office Equipment & Signs—Accumulated Depreciation 1726
    Gain or Loss—Sale of Fixed Assets & Securities 9250
      Office Equipment & Signs 1721
COMMENTS
  • Useful lives of equipment items vary according to the type of equipment, use, and other factors. Guidelines issued by federal tax authorities contain allowable methods and rates of depreciation. Tax counsel should be consulted before adopting depreciation methods and rates.
  • Detailed fixed asset depreciation recorded should support this account.