Answer:
Annual depreciation= $4,000
Explanation:
Giving the following information:
The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.
<u>To calculate the depreciation expense, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (29,000 - 9,000)/5
Annual depreciation= $4,000
Layla could be an efficient employee in reducing the defect rate in the manufacturing and engineering departments
Answer:
C. updating the accounts at the end of the period.
Explanation:
Adjusting the accounts is the process whereby transactions are reviewed ( usually at the end of an accounting period) to ascertain that all transactions have been recorded. This process ensures that necessary adjustment are made where necessary.
For example, a prepaid insurance account may require adjustments that will ensure that insurance expense is recognized in the books. This may be done by determining the period of expired insurance and posting necessary entries. The process of doing this is known as adjusting the accounts.
Answer:
$900,000
Explanation:
Depreciation for the year $600,000
Employee Bonuses $1,200,000
Total expense for the year $1,800,000
Expense to be reported in interim income statement 1,800,000/2=$900,000
