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. Elimination entries are used to increase or decrease (in the workpaper) the combined totals for individual accounts so that only transactions with external parties are reflected in the consolidated amounts. 4-16 Nature of Elimination Entries. Some eliminating entries are required at the end of one period but not at the end.
The accounting for requires an ongoing series of entries to charge a to, and eventually to it. These entries are designed to reflect the ongoing usage of fixed assets over time.Depreciation is the gradual charging to expense of an asset's over its expected. The reason for using depreciation to gradually reduce the recorded cost of a fixed asset is to a portion of the asset's expense at the same time that the company records the that was generated by the fixed asset. Thus, if you charged the cost of an entire fixed asset to expense in a single, but it kept generating revenues for years into the future, this would be an improper under the, because revenues are not being matched with related expenses.In reality, revenues cannot always be directly associated with a specific fixed asset.
Instead, they can more easily be associated with an entire system of production or group of assets.The for depreciation can be a simple entry designed to accommodate all types of fixed assets, or it may be subdivided into separate entries for each type of fixed asset.The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the ) and credit the account (which appears in the as a that reduces the amount of fixed assets). Over time, the accumulated depreciation balance will continue to increase as more depreciation is added to it, until such time as it equals the original cost of the asset. At that time, stop recording any depreciation expense, since the cost of the asset has now been reduced to zero.For example, ABC Company calculates that it should have $25,000 of depreciation expense in the current month. The entry is.
DebitCreditDepreciation expense25,000Accumulated depreciation25,000In the following month, ABC's controller decides to show a higher level of precision at the expense account level, and instead elects to apportion the $25,000 of depreciation among different expense accounts, so that each class of asset has a separate depreciation charge. The entry is:DebitCreditDepreciation expense - Automobiles4,000Depreciation expense - Computer equipment8,000Depreciation expense - Furniture & fixtures6,000Depreciation expense - Office equipment5,000Depreciation expense - Software2,000Accumulated depreciation25,000. Depreciation is considered an expense, but unlike most expenses, there is no related cash outflow. This is because a company has a net cash outflow in the entire amount of the asset when the asset was originally purchased, so there is no further cash-related activity. The one exception is a, where the company records it as an asset when acquired but pays for the asset over time, under the terms of the associated lease agreement.Finally, depreciation is not intended to reduce the cost of a fixed asset to its. Market value may be substantially different, and may even increase over time. Instead, depreciation is merely intended to gradually charge the cost of a fixed asset to expense over its useful life.Depreciation and a number of other accounting tasks make it inefficient for the accounting department to properly track and account for fixed assets.
They reduce this labor by using a to restrict the number of that are classified as fixed assets. Any expenditure for which the cost is equal to or more than the capitalization limit, and which has a useful life spanning more than one accounting period (usually at least a year) is classified as a fixed asset, and is then depreciated.Related Courses.
IntroductionA number of passages in the Bible refer to a book called “the book of life,” a figurative expression that originated from the ancient customs of (a) keeping various kinds of records like genealogical records (Neh. 7:5, 64; 12:22, 23) and of (b) registering citizens for numerous purposes (Jer. Accordingly, God is represented as having records of men, of their works, and of God’s dealings with them.
One such record is called “the book of life.”There is some evidence that in the city of Sardis a person’s name was sometimes removed from the city register before death if he had been convicted of a crime. This is undoubtedly behind the promise given to the overcomer in Revelation 3:5, “I will not erase his name from the book of life.” But what is the meaning and significance of the various references to the book of life in relation to salvation, to the believer, and to the unbeliever?
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Is it a record of all who are saved or could it be a record of all those for whom Christ died, which under the doctrine of Christ’s unlimited atonement, would include all the world? Passages Referring to the Book of Life(1) Psalm 69:28 “Let them be blotted out of the book of the living, and not be written with the righteous.”(2) Daniel 12:1 “Now at that time Michael, the great prince who stands guard over the sons of your people, will arise. And there will be a time of distress such as never occurred since there was a nation until that time; and at that time your people, everyone who is found written in the book, will be rescued.” Though the word “life” or “living” is not used here, it is part of the same concept.(3) In the gospels Christ says, “ but rejoice that your names are recorded in heaven” (Luke 10:20).
“Are recorded” is a perfect tense and looks at an abiding condition.