Answer and Explanation:
The journal entries are shown below
1.
On Denver books
Equipment Dr $17,000
Accumulated depreciation $60,000
Loss on sale of equipment $3,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $17,000
Accumulated depreciation $25,000
To Gain on sale of equipment $10,500
To Equipment $31,500
(Being equipment recorded)
2.
On Denver books
Equipment Dr $20,000
Accumulated depreciation $60,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $6,500
Accumulated depreciation $25,000
To Equipment $31,500
(Being equipment recorded)
Answer: Option (D) is correct.
Explanation:
A banker's acceptance is an instrument that represents the promised payment by the bank in the future. This payment is accepted as a time draft by the bank and is to be drawn on a particular deposit. This draft is having all the information that is related to the future payment amount, date of the payment and the party to which the payment to be made. This acceptance can also be traded until the date of maturity.
Answer:
Date Account title Debit Credit
December 1 Office Supplies Expense $790
Office Supplies $790
Explanation:
Office supplies is an asset but when it is used it should be debited to the office supplies expense account because it becomes an expense that should be catered for in the Income statement.
The office expense that is used for the year is:
= Book balance - Physical inventory
= 1,300 - 510
= $790
