A Accounts Payable AA Losses due to fire B Accounts Receivable BB Merchandise Inventory E Accumulated Depreciation—Equip EE Notes Payable F Allowance for Doubtful Accounts FF Payroll Tax Expense G Bad Debt Expense GG Premium on Bonds Payable H Bonds Payable HH Prepaid Insurance I Building II Prepaid Rent J Capital Lease Payable JJ Rent Expense K Cash KK Rent Revenue L Cost of Goods Sold LL Retained Earnings M Depreciation Expense MM Salaries and Wages Expense N Discount on Bonds Payable NN Salaries and Wages Payable O Dividends OO Sales Commission Expense P Equipment PP Sales Commission Payable Q Fed Income Tax Payable QQ Sales Returns R Fed Unemployment Tax Payable RR Sales Revenues S FICA Taxes Payable SS Sales Taxes Payable T Income Summary TT Service Revenue U Insurance Expense UU State Income Tax Payable V Interest Expense VV State Unemployment Tax Payable W Interest Payable WW Supplies X Interest Receivable XX Supplies Expense Y Interest Revenue YY Unearned Rent Revenue Z Land ZZ Unearned Service Revenue Examole of Journal Entry: K3000D,B2000D,TT5000C Where K denotes Cash account, 3000 is the amount, D stands for debit, B denotes Accounts Receivable, 2000 is the amount, D stands for debit, TT denotes Service Revenues, 5000 is the amount, and C stands for credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts in order of dollar amount – large amount to small amount, then the credit accounts in order of dollar amount – large amount to small amount. Question: Selected accounts from company's trial balance on 12/31/2020 before adjusting entries appear below: Equipment 870,000 Accumulated Depreciation—Equipment 200,000 The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.). Provide the adjusting journal entry that company must make on December 31, 2020, the end of the fiscal year.

A Accounts Payable AA Losses due to fire B Accounts Receivable BB Merchandise Inventory E Accumulated Depreciation—Equip EE Notes Payable F Allowance for Doubtful Accounts FF Payroll Tax Expense G Bad Debt Expense GG Premium on Bonds Payable H Bonds Payable HH Prepaid Insurance I Building II Prepaid Rent J Capital Lease Payable JJ Rent Expense K Cash KK Rent Revenue L Cost of Goods Sold LL Retained Earnings M Depreciation Expense MM Salaries and Wages Expense N Discount on Bonds Payable NN Salaries and Wages Payable O Dividends OO Sales Commission Expense P Equipment PP Sales Commission Payable Q Fed Income Tax Payable QQ Sales Returns R Fed Unemployment Tax Payable RR Sales Revenues S FICA Taxes Payable SS Sales Taxes Payable T Income Summary TT Service Revenue U Insurance Expense UU State Income Tax Payable V Interest Expense VV State Unemployment Tax Payable W Interest Payable WW Supplies X Interest Receivable XX Supplies Expense Y Interest Revenue YY Unearned Rent Revenue Z Land ZZ Unearned Service Revenue Examole of Journal Entry: K3000D,B2000D,TT5000C Where K denotes Cash account, 3000 is the amount, D stands for debit, B denotes Accounts Receivable, 2000 is the amount, D stands for debit, TT denotes Service Revenues, 5000 is the amount, and C stands for credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts in order of dollar amount – large amount to small amount, then the credit accounts in order of dollar amount – large amount to small amount. Question: Selected accounts from company's trial balance on 12/31/2020 before adjusting entries appear below: Equipment 870,000 Accumulated Depreciation—Equipment 200,000 The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.). Provide the adjusting journal entry that company must make on December 31, 2020, the end of the fiscal year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

A	Accounts Payable	AA	Losses due to fire
B	Accounts Receivable	BB	Merchandise Inventory
E	Accumulated Depreciation—Equip	EE	Notes Payable
F	Allowance for Doubtful Accounts	FF	Payroll Tax Expense
G	Bad Debt Expense	GG	Premium on Bonds Payable
H	Bonds Payable	HH	Prepaid Insurance
I	Building	II	Prepaid Rent
J	Capital Lease Payable	JJ	Rent Expense
K	Cash	KK	Rent Revenue
L	Cost of Goods Sold	LL	Retained Earnings
M	Depreciation Expense	MM	Salaries and Wages Expense
N	Discount on Bonds Payable	NN	Salaries and Wages Payable
O	Dividends	OO	Sales Commission Expense
P	Equipment	PP	Sales Commission Payable
Q	Fed Income Tax Payable	QQ	Sales Returns
R	Fed Unemployment Tax Payable	RR	Sales Revenues
S	FICA Taxes Payable	SS	Sales Taxes Payable
T	Income Summary	TT	Service Revenue
U	Insurance Expense	UU	State Income Tax Payable
V	Interest Expense	VV	State Unemployment Tax Payable
W	Interest Payable	WW	Supplies
X	Interest Receivable	XX	Supplies Expense
Y	Interest Revenue	YY	Unearned Rent Revenue
Z	Land	ZZ	Unearned Service Revenue

Examole of Journal Entry: K3000D,B2000D,TT5000C

Where K denotes Cash account, 3000 is the amount, D stands for debit, B denotes Accounts Receivable, 2000 is the amount, D stands for debit, TT denotes Service Revenues, 5000 is the amount, and C stands for credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts in order of dollar amount – large amount to small amount, then the credit accounts in order of dollar amount – large amount to small amount.

Question: Selected accounts from company's trial balance on 12/31/2020 before adjusting entries appear below:

Equipment	870,000
Accumulated Depreciation—Equipment	200,000

The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.). Provide the adjusting journal entry that company must make on December 31, 2020, the end of the fiscal year.

Expert Solution

Step 1

Straight line method of Depreciation:

Depreciation and amortisation, often known as the process of expensing an asset over a longer period of time than when it was purchased, are calculated on a straight line basis.
It is determined by multiplying the discrepancy between the asset's estimated salvage value and purchase price by the expected usable life of the asset.
Although it has several faults, straight line foundation is popular because it is simple to compute and understand.

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.