n addition to these monthly expenses, the company will pay a commission to its salespeople equal to 4% of the sales revenue from
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Answer:
Kindly see attached organized table for clarity.
Item cash Net income
a Purchase of Supplies of cash -$133 -
b Adjusting entry for use of supplies - -$31
c Made sales on account - $1,297
d Received cash from customer on acct $865 -
e Purchased equipment for cash -$2,528 -
f Depreciation of building to be recorded - -$610
Answer:
$222,100
Explanation:
Cost = $837,300
Residual value = $84,000
Useful life = 9 years
Now,
Annual straight line depreciation =
Annual straight line depreciation =
Annual straight line depreciation =
Annual straight line depreciation = $83,700
Accumulated depreciation for three years i.e., 2018, 2019 and 2020 would be:
Accumulated depreciation = 3 × $83,700
Accumulated depreciation = $251,100
Book value (at the end of year 2020) = Cost - Accumulated depreciation
Book value (at the end of year 2020) = $837,300 - $251,100
Book value (at the end of year 2020) = $586,200
Revised useful life = 5 years
No. years asset has been used = 3 years
Remaining useful life = 2 years
Revised salvage value = $142,000
Therefore, depreciation expense for the remaining three year would be:
Revised depreciation expense =
Revised depreciation expense =
Revised depreciation expense =
Revised depreciation expense = $222,100