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Compute the debit to Accumulated Depreciation for the year.

05 / 03 / 2018 Assignment

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Tom’s Roadside
Burger Stand has a beginning balance in the Accumulated Depreciation -Equipment
account of $200,000. The depreciation expense for the year was $ 30,000. At the
end of the year, the balance in the Accumulated Depreciation-Equipment account
was $140,000.

Required:

1. Compute
the debit to Accumulated Depreciation for the year.

2.
What would cause Tom’s Roadside Burger Stand to debit Accumulated
Depreciation-Equipment?

7.5-1 Accumulated depletion reduces equity, as
this account is a contra-revenue account.

7.5-2 Natural resources are reported in the
Intangible Assets section of the income statement.


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