Answered: Compute the following: a. Lobo Company…

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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Compute the following:

a. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an amount box does not require, leave it blank.

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DESCRIPTION
DEBIT CREDIT
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1 а.
1.
2
a. Lobo Company purchased equipment for $40,000 with a useful life of five years and no
expected salvage value. Compute the book value at the end of the second year of the
equipment's life.
Book Value $
b. Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200
for the 5 days beginning the previous December 31. Prepare the adjusting entry on December
31. Omit explanations. If an amount box does not require, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 b.
1
2
2

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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