Question

If a fixed asset, such as a computer, were purchased on January 1 for $2,061 with an estimated life of 5 years and a salvage or residual value of $159, the journal entry for monthly expense under straight-line depreciation is

Answer 1

Answer:

Depreciation Expense 31.70

Accumulated Depreciation 31.70

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

( $2,061 -- $159) / 5 = $380.4

Monthly depreciation = $380.4 / 12 = $31.70

I hope my answer helps you