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Westkost [7]
3 years ago
7

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. Equipment

purchased for $63,000 on January 3, 2019, has an estimated life of 5 years and an estimated salvage value of $5,600. The firm uses the straight-line method of depreciation. Determine the adjustment for the month ended January 31, 2019. (Round your answers to 2 decimal places.) Record adjusting entry for depreciation.
Business
1 answer:
lara31 [8.8K]3 years ago
4 0

Answer:

Straight Line Depreciation Expense    $ 11,480

Explanation:

Given

Cost= $ 63,000

Salvage Value = $ 5,600

Life in years = 6

Calculations

Straight Line Depreciation Expense= Cost - Salvage Value/ Useful life in years

Straight Line Depreciation Expense     = $ 63,000- 5,600/5

= $ 57,400/5= $ 11,480

Depreciation Expense for 1 month = $ 11480/12= $ 956.67

Adjustment at the end of the 1st month

Depreciation Expense $ 956.67 Dr

Accumulated Depreciation $ 956.67 Cr.

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The December 31, 2016 balance sheet of Jensen Company showed Equipment of $76,000 and Accumulated Depreciation of $18,000. On Ja
Blababa [14]

Answer:

A. $54,000

B. $9,000

Explanation:

A. Computation for the depreciable cost of the equipment

Book value, 1/1/17 $58,000

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Less salvage value $4,000

Depreciable cost $54,000

($58,000-$4,000)

Therefore the depreciable cost of the equipment is $54,000

B. Computation for the revised annual depreciation

Revised annual depreciation = $54,000÷6 years

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Therefore the revised annual depreciation is $9,000

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2 years ago
Basic activities in every accounting department, including sales order processing, accounts receivable, inventory and purchasing
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Answer:

General ledger

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A general ledger in accounting is a book pf account that is meant to record the business' transaction entries towards the preparation of the income statement and the statement of financial position.

It records activities like sales order processing , accounts receivable , inventory and purchasing , accounts payable and payroll

We have two types of general ledger which are private ledger that records transaction on salaries , wages and capitals , and nominal ledger that records transaction on expense , income , depreciation etc.

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3 years ago
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are prese
tamaranim1 [39]

Answer:

The answer is attached;

Explanation:

Download xlsx
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In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to consume is 0.8.
lutik1710 [3]

Answer: Increase by $250

Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.

As, there is an increase in investment in the given case so it will result in increase in income for the economy.

We can compute it  as :-

change\:in\:income=\frac{change\:in\:investment}{1-MPC}

change\:in\:income=\frac{\$50}{1-0.8}

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Therefore, the expenditure would increase by $250

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