b. Sold $6,000 in services on account. Date Description Post. Debit Credit Ref. C. Paid monthly rent of $3,000. Date Description Post. Debit Credit Ref. d. Paid $4,000 owed to a vendor. Date Description Post. Debit Credit Ref. e. Purchased a one-year insurance policy for $6,000. Date Description Post. Debit Credit Ref. f. Recorded expired insurance of $500. Date Description Post. Debit Credit Ref. g. Purchased machinery for $25,000 in exchange for a note payable. Date Description Post. Debit Credit Ref. h. Machinery was purchased above has a residual value of $4,000 and a useful life of 7 years. Calculate the depreciation expense for year 1 and the book value at the end of year 1.

b. Sold $6,000 in services on account. Date Description Post. Debit Credit Ref. C. Paid monthly rent of $3,000. Date Description Post. Debit Credit Ref. d. Paid $4,000 owed to a vendor. Date Description Post. Debit Credit Ref. e. Purchased a one-year insurance policy for $6,000. Date Description Post. Debit Credit Ref. f. Recorded expired insurance of $500. Date Description Post. Debit Credit Ref. g. Purchased machinery for $25,000 in exchange for a note payable. Date Description Post. Debit Credit Ref. h. Machinery was purchased above has a residual value of $4,000 and a useful life of 7 years. Calculate the depreciation expense for year 1 and the book value at the end of year 1.

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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