1. What is the depreciation Expense balance on December 31st of the first year of operations?a. 6000b. 57000c. 6300d. 630002. What is the unearned Revenue balance on December 31st of the first year of operation?a. 2000b. 40000c. 0d. 42000 ABC Inc. established its operation at January 1st, 2014.A) Enter all necessery Journal Entries that occured during the year.B) Then prepare the adjusting entries, closing entries, financials, worksheet & T accounts.1) In January, Initial stock issuance2) January, bought Equipment for $63000, 10 years life, $3000 residual value3) November, paid total utility bills4) In January, paid in advance rent for two years:5) In February, received prepayment from a customer for service to be provided:6) Dec. 31st 2014, unearned revenue balance7) In December, Dividend declared$450,000$63,000$8,500$12,000$42,000$2,000$10,000$3,000

The question is related to the Depreciation Expenses and unearned Revenue. The Depreciation is…

1. What is the depreciation Expense balance on December 31st of the first year of operations? a. 6000 b. 57000 c. 6300 d. 63000 2. What is the unearned Revenue balance on December 31st of the first year of operation? a. 2000 b. 40000 c. 0 d. 42000

1. What is the depreciation Expense balance on December 31st of the first year of operations? a. 6000 b. 57000 c. 6300 d. 63000 2. What is the unearned Revenue balance on December 31st of the first year of operation? a. 2000 b. 40000 c. 0 d. 42000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. What is the depreciation Expense balance on December 31st of the first year of operations?

a. 6000

b. 57000

c. 6300

d. 63000

2. What is the unearned Revenue balance on December 31st of the first year of operation?

a. 2000

b. 40000

c. 0

d. 42000

ABC Inc. established its operation at January 1st, 2014.
A) Enter all necessery Journal Entries that occured during the year.
B) Then prepare the adjusting entries, closing entries, financials, worksheet & T accounts.
1) In January, Initial stock issuance
2) January, bought Equipment for $63000, 10 years life, $3000 residual value
3) November, paid total utility bills
4) In January, paid in advance rent for two years:
5) In February, received prepayment from a customer for service to be provided:
6) Dec. 31st 2014, unearned revenue balance
7) In December, Dividend declared
$450,000
$63,000
$8,500
$12,000
$42,000
$2,000
$10,000
$3,000

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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