ASAP!! Pass journal entries for Frankwood Company Ltd The account balances of the Yamina & Company for the year ended December 31, 2021 is as under Sr. No Title of Accounts Amount 1 Cash 1,200 2 Office Supplies 800 3 Prepaid Advertising 6,000 4 Rent Expenses 3,000 5 Furniture 10,000 6 Salaries expenses 5,000 7 Allowance for depreciation 2,000 8 Yamina ‘s Capital 7,000 9 Commission Income 14,000 Additional Information Office supplies on hand Rs. 500 Advertising cost unexpired Rs. 2,000 Current year depreciation on furniture 20% on cost Prepaid salaries Rs.800 Actual rent expense for the year Rs. 3,600 Commission receivable Rs. 300 and unearned commission Rs.700 Required Prepaid Adjusting entries Prepare Comprehensive Income for the year ended December 31, 2011 Prepare Financial position as at December 31, 2011
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.
ASAP!!
Pass
The account balances of the Yamina & Company for the year ended December 31, 2021 is as under
|
Sr. No |
Title of Accounts |
Amount |
|
1 |
Cash |
1,200 |
|
2 |
Office Supplies |
800 |
|
3 |
Prepaid Advertising |
6,000 |
|
4 |
Rent Expenses |
3,000 |
|
5 |
Furniture |
10,000 |
|
6 |
Salaries expenses |
5,000 |
|
7 |
Allowance for depreciation |
2,000 |
|
8 |
Yamina ‘s Capital |
7,000 |
|
9 |
Commission Income |
14,000 |
Additional Information
- Office supplies on hand Rs. 500
- Advertising cost unexpired Rs. 2,000
- Current year depreciation on furniture 20% on cost
- Prepaid salaries Rs.800
- Actual rent expense for the year Rs. 3,600
- Commission receivable Rs. 300 and unearned commission Rs.700
Required
- Prepaid
Adjusting entries - Prepare Comprehensive Income for the year ended December 31, 2011
- Prepare Financial position as at December 31, 2011
Account means the systematic record of various transactions entered by businesses.
Income statement means where all expenses and income are shown .
Balance sheet means where all assets , liabilities and capital is shown.
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