Question

Q- Kites were acquired and placed in service on June 2016. The unadjusted trial balance shows...

Q- Kites were acquired and placed in service on June 2016.

The unadjusted trial balance shows on Aug 31, 2016 kites $50,000 and the accumulated depreciation kites $12,000.Please prepare the adjustment entries. The company uses the stright line depreciation method.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Dep. under straight line depreciation method.= ( Purchase cost - Salvage value ) / USeful life

Let us assume Salvage value = $ 0 and USeful life = 5 years

Since the info. is missing.

Assume that year ends on Dec. 31

Dep. under straight line depreciation method.= ( 50000 - 0 ) / 5 = $ 10000 per year

SInce Kites were acquired and placed in service on June 2016, therefore, for 2016 , dep. will be charged for 6 months only and journal entry is:-

Dep. exp. ( 10000 * 6/12 ) 5000
Accumulated dep. 5000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31,...
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285 Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0   Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520   Utilities Expense 8,595 Depreciation Expense 144,000   Interest Expense 6,840 _______      Totals $1,522,565 $1,522,565 Adjusting Items: 1....
Daw Company’s December 31 year-end unadjusted trial balance shows a $46,000 balance in Notes Receivable. This...
Daw Company’s December 31 year-end unadjusted trial balance shows a $46,000 balance in Notes Receivable. This balance is from one 9% note dated December 1, with a period of 45 days. Assume Daw Company does not prepare reversing entries. Prepare journal entries for December 31 and for the note’s maturity date assuming it is honored. (Use 360 days a year.) 1 Record the year-end adjustment related to this note, if any. 2 Record the journal entry on the note’s maturity...
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31,...
The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title Debit Credit Cash $88,450 Accounts Receivable 331,860 Supplies 7,255 Prepaid Rent 16,000 Equipment 295,285 Accumulated Depreciation $224,260 Accounts Payable 78,555 Wages Payable 0   Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500 Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520   Utilities Expense 8,595 Depreciation Expense 144,000   Interest Expense 6,840 ________      Totals $1,528,565 $1,528,565 Adjusting Items: 1....
4. The trial balance of Swift Company shows the following balances for selected accounts on November...
4. The trial balance of Swift Company shows the following balances for selected accounts on November 30, 2006: Prepaid Insurance $ 5,000 Unearned Revenue $ 1,800 Equipment 40,000 Notes Payable 24,000 Accumulated Depreciation 8,800 Interest Payable 400 Instructions Using the additional information given below, prepare the appropriate monthly adjusting entries at November 30. Show computations. A. Revenue earned for services rendered to customers, but not yet billed, totaled $4,000 on November 30. B. The note payable is a 7%, 1-year...
Problem One The unadjusted trial balance of the Rock-N-Roll Heaven  is printed below. Prepare the adjusting entries...
Problem One The unadjusted trial balance of the Rock-N-Roll Heaven  is printed below. Prepare the adjusting entries for the following unadjusted trial balance. Be sure to format the journal entries correctly. Rock N-Roll Heaven Unadjusted Trial Balance August 31, 2018 Cash 18,700 Accounts Receivable 1,830 Supplies 100 Equipment 19,000 Accum Depreciation - Equipment. 330 Accounts Payable 3,600 Unearned Rent Revenue 1,300 Salaries Payable 1,600 Notes Payable, Long-Term 5,000 Common Stock 10,000 Retained Earnings 17,800 Service Revenue Rent Revenue Depreciation Expense-Equipment Supplies...
Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the...
Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Milbank Repairs & Service Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 12,030 Accounts Receivable 79,860 Supplies 19,240 Equipment 464,530 Accounts Payable 18,760 Unearned Fees 21,170 Nancy Townes, Capital 338,000 Nancy Townes, Drawing 15,880 Fees Earned 481,100 Wages Expense 111,620 Rent Expense 85,150 Utilities Expense 61,100 Miscellaneous Expense 9,620 859,030 859,030 For preparing the...
The fiscal year-end unadjusted trial balance for Nelson Company is found on the trial balance tab....
The fiscal year-end unadjusted trial balance for Nelson Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nelson Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2016, follow. a.Store supplies still available at fiscal year-end amount to $1,750. b.Expired insurance, an administrative expense, for the fiscal year is $1,400. c.Depreciation expense on store equipment, a selling...
First Landing Golf Club Trial Balance December 31, 2018                        Unadjusted Debit Credit Cash  &nb
First Landing Golf Club Trial Balance December 31, 2018                        Unadjusted Debit Credit Cash                15,000 Accounts Receivable - Members                13,000 Allowance for Doubtful Accounts                  1,100 Rent Receivable                         -   Prepaid Insurance                  9,000 Shop Supplies                  3,600 Land             350,000 Buildings             120,000 Accumulated Depreciation - Buildings                40,000 Equipment             150,000 Accumulated Depreciation - Equipment                70,000 Interest Payable Salaries and Wages Payable                         -   Unearned Dues                         -   Note Payable             100,000 Common Stock            ...
ZYX Merchandising Company Unadjusted Trial Balance December 13, 2019 Account Balance Bank 499.200 Interest Payable 480.000...
ZYX Merchandising Company Unadjusted Trial Balance December 13, 2019 Account Balance Bank 499.200 Interest Payable 480.000 Bank Loan (5 years) 1.472.000 Notes Receivable 896.000 Service Revenue 2.880.000 Cost of Service 1.536.000 Office Supplies 57.600 Accumulated Depreciation (Building) 896.000 Equipment 704.000 Marketing Expense ???? Building 1.280.000 Depreciation Expense (Building) 192.000 Interest receivable 240.000 Note payable (3 years) 800.000 Cash 89.600 Profit from sale of equipment 19.200 Account Receivable 364.800 Capital 2.464.000 Utilities Expense 614.400 Accounts Payable 448.000 Bank Loan (1 year)...
Thanos Merchandising Company Unadjusted Trial Balance December 13, 2019 Account Balance Bank 187.200 Interest Payable 180.000...
Thanos Merchandising Company Unadjusted Trial Balance December 13, 2019 Account Balance Bank 187.200 Interest Payable 180.000 Bank Loan (5 years) 552.000 Notes Receivable 336.000 Service Revenue 1.080.000 Cost of Service 576.000 Office Supplies 21.600 Accumulated Depreciation(Building) 336.000 Equipment 264.000 Marketing Expense ???? Building 480.000 Depreciation Expense (Building) 72.000 Interest receivable 90.000 Note payable (3 years) 300.000 Cash 33.600 Profit from sale of equipment 7.200 Account Receivable 136.800 Capital 924.000 Utilities Expense 230.400 Accounts Payable 168.000 Bank Loan (1 year) 60.000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT