英语翻译The Effects on Financial Statements of the Recognition o

英语翻译
The Effects on Financial Statements of the Recognition of Depreciation Expense
As it was stated,the revenue is expected to be $18 000 per year.While supplying this amount,the computer gets partially used.Recording depreciation expense reflects the process of recognizing the used part of the computer in the books,The amount of depreciation expense in accordance with the straight-line method is determined by subtracting the salvage value from the historical cost and dividing the result by the number of years the computer will be in use.
Taking our numbers,we get $10 000(i,e,($46 000-$6 000)/4year) of depreciation expense each year.The expense recognition is show in a contra asset account titled Accoumulated Depreciation.The revenue (i,e,$18 000)and expense (i,e,$10 000) recognition repeats for 4 years and is shown below via two entries:
Note that the recognition of depreciation expense affects the balance sheet and the income statements,but dose not make many changes to The Cash Flow Statements.The thing is that the cash was already paid when Mr.Kosher bought the computers.Now this amount is allocated to expense in equal parts over the computer's useful life.Pay attention that the effects of depreciation occur throughout the life cycle of the asset(i,e,4year).Indeed,the amount of depreciation expense each year remains the same—$10 000; however,the amount of accumlated depreciation increases every year:in 20X5 it is $10 000,in 20X6—$20 000,in 20X7—$30 000,and in 20X8—$40 000.