During the year ended December 31, 2021 the following transactions occurred: The table is in the pictures  Prepare all the journal entries necessary to record the above transactions and any necessary December 31 year end adjusting entries. No need to provide closing entries. Ignore income and sales taxes . Clearly label of the number is credited or debited
During the year ended December 31, 2021 the following transactions occurred: The table is in the pictures  Prepare all the journal entries necessary to record the above transactions and any necessary December 31 year end adjusting entries. No need to provide closing entries. Ignore income and sales taxes . Clearly label of the number is credited or debited
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Question
During the year ended December 31, 2021 the following transactions occurred:
The table is in the pictures

Prepare all the journal entries necessary to record the above transactions and any necessary December 31 year end adjusting entries . No need to provide closing entries. Ignore income and sales taxes . Clearly label of the number is credited or debited
Transcribed Image Text:tugust IS
will be uncollectable
tugust 28
receused half the amaint owing
from Aueust 15 invoice
Octobir 31 foy principal and interest on note
paspuble
DecemberB Received anotice sayıng that the
client from tugust is° feco transaction
be maluae
and wile not
Bras doctared banka payments.
ay
Wrote-aff theoutstonding amount
owed By the cleent
(a Decemberplssued an insoice for $10,000 for
220/0camsulting servicer provided
during ecember ho aclient
mfoxpanding.operations.. Terms are
to2/15,net 30. CNYW1 assumes
that $5010 of ary outstanding
of the
bolounees at the
end
will be uncollectéble
year
Transcribed Image Text:6olances at the end of the year
M Date
Transaction
Borrawed f 30,000 from the hank a
an interest rate of 4% for 3 years.
Interest enly pouyments reduired
12 months
every
faund of fice space
a t-year lease
2020 at
Required to pay for the a St six=
manths upfront
July st
July 2 nd
to rent. Cloreed to
starting July 1,
cost of $2000/month.
Juday brd
equipment for $10,000.
The equipment is to be olepreciated feem
fona stroupht-line Bases over 8 year
and is ecpeeted -lo have residua
residual valu of $1,000. Poid $4,000
Purchased
cosh and signed
a note payable for the
remainung amount. The note
carries cn interest rete et a rate
10%.The notes and the interest
are payable an Detober, 31, 2021
Received F9,000 cash far
8ookkecpineservíces lo be pravided
lequally each month for the beriad
August to etioat 1, 2024-
2o July d, 20 22=
July1
August $5
Issued an anaice for $5000 for
consulting senvices provided durine Augate
to a cliest facingbankeuptey.
Terms are 2/iS net 30. CluwI
lassumes thet S%gany sutstanding
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