Accrued fixed asset entries
Borrow: Administrative Expenses - Depreciation Expense
Selling Expenses - Depreciation Expense
Manufacturing Expenses - Depreciation Expense
Credit: Accumulated Depreciation
Accumulated depreciation is a fixed asset in the the course of use, the amount that should be amortized over the period of benefit of the asset. Accumulated depreciation account belongs to the asset class of the allowance adjustment account, which is just the opposite of the structure of the general asset account, accumulated depreciation is credited to register an increase, debited to register a decrease, and the balance on the credit side indicates the total amount of accumulated depreciation.
Contents of Fixed Assets
The eight categories of fixed assets include the following:
1. Houses and buildings, which refers to all houses and buildings whose property rights belong to the enterprise.
2, general office equipment, refers to the enterprise commonly used in the office and affairs of the equipment.
3, special equipment, means all the equipment belonging to the enterprise specifically for a particular job.
4, cultural relics and displays, refers to the museums, exhibition halls and other cultural institutions of various cultural relics and displays.
5. Books, refers to the books of specialized libraries, cultural halls and business books of the units.
6. Transportation equipment refers to all kinds of transportation tools used in the logistics sector.
7, machinery and equipment, mainly used by the enterprise logistics department for its own maintenance of machine tools, power machines, tools, etc. and standby generators, etc., as well as counting instruments, testing instruments and hospital medical equipment and equipment.
8, other fixed assets, refers to the fixed assets not included in the above categories. The competent authorities can be divided appropriately according to the specific circumstances, but also the above categories can be appropriately subdivided to increase the type.
How is depreciation calculated?
1, annual average method (straight-line method)
Annual depreciation = (original value of fixed assets - estimated net salvage value) ÷ estimated useful life = original value of fixed assets × (1 - estimated net salvage rate) ÷ estimated useful life
Monthly depreciation = annual depreciation ÷ 12
2, workload method
Depreciation per unit of workload = Fixed assets Original value × (1 - net salvage rate) ÷ estimated total workload
Monthly depreciation = fixed assets workload for the month × unit workload depreciation amount
3, accelerated depreciation method
(1) double declining-balance method
Annual depreciation rate = 2/estimated useful life × 100%
Fixed assets annual depreciation = fixed assets net value at the beginning of the period × annual Depreciation rate = (Original value of fixed assets - Accumulated depreciation) × Annual depreciation rate
Monthly depreciation of fixed assets = Annual depreciation of fixed assets ÷ 12
Annual depreciation for each of the last two years = (Original value of fixed assets - Estimated net salvage value - Accumulated depreciation of previous years) ÷ 2
(2) Sum-of-the-years method
Annual depreciation rate = Remaining useful life/Expected Sum of years of useful life
Annual depreciation = (original value of fixed assets - estimated net salvage value) x annual depreciation rate
Monthly depreciation rate = annual depreciation rate ÷ 12