357 Accumulated Depreciation of IT - Hardware
Liabilities
Contra Assets
Synopsis
Account 357 is established to record the total Depreciation applied to computer Hardware owned by the dealership and used in the automobile business.
Debits |
Credits |
|
|
Example 1
Record the monthly provision of $3,360 for depreciation on IT Hardware. The monthly expense is pro-rated to each department as shown in the example below.
Journal: Standard Entries Journal
Entry: |
|
Debit |
Credit |
Account 091-01 |
Depreciation – Equipment – New Vehicles Department |
$605 |
|
Account 091-02 |
Depreciation – Equipment – Used Vehicles Department |
$504 |
|
Account 091-03 |
Depreciation – Equipment – Lease & Rental Department |
$117 |
|
Account 091-04 |
Depreciation – Equipment – Finance & Insurance Department |
$151 |
|
Account 091-05 |
Depreciation – Equipment – Mechanical Department |
$638 |
|
Account 091-06 |
Depreciation – Equipment – Body Shop Department |
$336 |
|
Account 091-07 |
Depreciation – Equipment – Parts & Accessories Department |
$505 |
|
Account 091-09 |
Depreciation – Equipment – General & Administrative |
$504 |
|
Account 357 |
Accumulated Depreciation – IT Hardware |
|
$3,360 |
Example 2
Record the disposition of old computers that were removed from service. The original fixed asset value is $7,000 and the depreciation to date is $6,597. The resulting “write off” is $403.
Journal: General Journal
Entry: |
|
Debit |
Credit |
Account 357 |
Accumulated Depreciation – IT Hardware |
$6,597 |
|
Account 955 |
Other Deductions |
$403 |
|
Account 287 |
IT- Hardware |
|
$7,000 |
Note:
Professional tax and accounting advice should be obtained regarding the proper method of depreciation, which can be applied to IT Hardware.