MAC's Airport Parking Purchased Two Vans for the Business on 1

question 62

Multiple Choice

MAC's Airport Parking purchased two vans for the business on 1 January 2018. The vans cost $80 000 each and have a useful life of 5 years with an expected residual of $10 000 each. The adjusting entry for depreciation on 30 June 2018, using the straight-line method, is:

• A) DR Accumulated depreciation $14 000; CR Depreciation expense $14 000
• B) DR Depreciation expense $14 000; CR Accumulated depreciation $14 000
• C) DR Accumulated depreciation $28 000; CR Depreciation expense $28 000
• D) DR Depreciation expense $28 000 CR Accumulated depreciation $28 000

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