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hram777 [196]
3 years ago
9

On January 1, 2018, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a sal

vage value of) $1,000 at the end of its useful life in five years. The company uses straight-line depreciation. It has not recorded any adjustments relating to this equipment during 2018. Complete the necessary journal entry.
Business
1 answer:
vichka [17]3 years ago
5 0

Answer:

The journal entries are as follows:

(i) On January 1, 2018

Equipment A/c Dr. $10,000

        To cash A/c                  $10,000

(To record the purchase of equipment)

(ii) On December 31st,

Depreciation expense A/c Dr. $1,800

              To Accumulated depreciation - equipment   $1,800

(To record the accumulated depreciation on equipment for the year 2018 under the straight line method)

Workings:

Depreciation:

= (Cost of the equipment - Salvage value) ÷ Useful life

= ($10,000 - $1,000) ÷ 5

= $9,000 ÷ 5

= $1,800

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Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I
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Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

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7 0
3 years ago
The bookkeeper for Sunland Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is r
VikaD [51]

Answer:

Explanation:

The adjusting entries are shown below:

A. Interest expense A/c Dr $370

            To Interest Payable            $370

(Being accrued interest adjusted)

B.  Accounts receivable A/c Dr $1,830

         To Service revenue A/c                $1,830

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            To Salary Payable            $900

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3 years ago
During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, p
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Answer:

$20

Explanation:

Given that,

Cash collected from the customers = $100

Cash paid to suppliers = $60

Cash paid to employees and other creditors = $20

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3 years ago
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