After completing a trial balance and discovering some transactions that made it to the general journal but not the general ledger, Reha has the following transactions to post to PB&J Cafe's general ledger: On May 3, 2019, PB&J Cafe paid $2,300 for its rent to Main Street Holdings, LLC On May 10, 2019, PB&J Cafe made a cash sale for $32.49. On May 12, 2019, PB&J Cafe paid $392 for an order of from The Peanut Gallery How should Reha record these entries in the general ledger for each transaction? Explain why it's important for the general ledger to contain all the transactions in the general journal. Your answer should be at least 100 words.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
After completing a
- On May 3, 2019, PB&J Cafe paid $2,300 for its rent to Main Street Holdings, LLC
- On May 10, 2019, PB&J Cafe made a cash sale for $32.49.
- On May 12, 2019, PB&J Cafe paid $392 for an order of from The Peanut Gallery
How should Reha record these entries in the general ledger for each transaction? Explain why it's important for the general ledger to contain all the transactions in the general journal. Your answer should be at least 100 words.
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