Evangeline

Can someone please help me with this question? I am a little confused.I have to make adjusting entries. This was in the additional information for the year ended 30 June 2008:"Furniture is depreciated on a Straight Line Basis over 8 years with no residual value. There isn't any depreciation provided on assets purchased in the month of purchase. Other than the purchase of office chairs on 28 June 2008, there were no purchases or sales of non-current assets during the year"The Trial Balance as at 31 May 2008 shows:Accumulated Depreciation - Furniture - $275845Furniture - at cost - $630504The 28 June 2008 transaction was purchasing office chairs for $24660 excl GST.I am confused about whether I should make an adjusting entry for 12.5% (100% / 8 years), or whether I have to work it out another way because there seems to be depreciation already accumulated on that account.Thank you for any help!

degegrw

Various tax rules dictate amounts for accumulated depreciation. Many assets, considered fixed assets for internal purposes, are expensed in their entirety in the year of purchase for income tax purposes. Depreciation accounts are adjusted annually with numbers supplied by your CPA, the Trial Balance. For 'In-House' use, the accounting department often makes monthly estimated accumulated depreciation postings as an aid to management.Define the reason for you postings.