E35 (LD2, 1), AN Devin Wolf Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $4 + 7,000 + 10,000 Accumulated Depreciation Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable 2,100 4 2,450 32,000 All the accounts have normal balances. The information below has been gathered at December 31, 2022. Interest will be paid when the note is paid 1. Devin Wolf Company bomowed $10,000 by signing a 9%, one-year note on September 1, 2022 2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand 3. Depreciation on the equipment for 2022 is $1,000 Supplies Useamed Service Revenue 4. Devin Wolf paid $2,100 for 12 months of insurance coverage on June 1, 2022 5. On December 1, 2022, Devin Wolf collected $32,000 for consulting services to be performed evenly from December 1, 2023, through March 31, 2023 6 Devin Wolf performed consulting services for a client in December 2022. The client will be billed $4,200 7. Devin Wolf pays its employees total salaries of 59,000 every Monday for the preceding 5-day work (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2022 Instructions Prepare adjusting entries for the seven items described above. Devin Wolf prepares adjustments annually. Mentify types of alie ments and account relationships
E35 (LD2, 1), AN Devin Wolf Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $4 + 7,000 + 10,000 Accumulated Depreciation Equipment Equipment Interest Payable Notes Payable Prepaid Insurance Salaries and Wages Payable 2,100 4 2,450 32,000 All the accounts have normal balances. The information below has been gathered at December 31, 2022. Interest will be paid when the note is paid 1. Devin Wolf Company bomowed $10,000 by signing a 9%, one-year note on September 1, 2022 2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand 3. Depreciation on the equipment for 2022 is $1,000 Supplies Useamed Service Revenue 4. Devin Wolf paid $2,100 for 12 months of insurance coverage on June 1, 2022 5. On December 1, 2022, Devin Wolf collected $32,000 for consulting services to be performed evenly from December 1, 2023, through March 31, 2023 6 Devin Wolf performed consulting services for a client in December 2022. The client will be billed $4,200 7. Devin Wolf pays its employees total salaries of 59,000 every Monday for the preceding 5-day work (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2022 Instructions Prepare adjusting entries for the seven items described above. Devin Wolf prepares adjustments annually. Mentify types of alie ments and account relationships
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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Submit them in excel form
Transcribed Image Text:E35 (LD2, 1), AN Devin Wolf Company has the following balances in selected accounts on December 31, 2022.
Accounts Receivable
$4
Accumulated Depreciation Equipment
Equipment
Interest Payable
Notes Payable
Prepaid Insurance
Salaries and Wages Payable
+
7,000
+
10,000
2,100
-0-
2,450
Supplies
Useamed Service Revenue
32,000
All the accounts have normal balances. The information below has been gathered at December 31, 2022. Interest will be paid when the note is repaid
1. Devin Wolf Company bomowed $10,000 by signing a 9%, one-year note on September 1, 2022
2. A count of supplies on December 31, 2022, indicates that supplies of $900 are on hand
3. Depreciation on the equipment for 2022 is $1,000
4. Devin Wolf paid $2,100 for 12 months of insurance coverage on June 1, 2022
Prepare adjusting entries for the seven items described above. Devin Wolf prepares adjustments annoully
Identify types of adjustments and account relationships
5. On December 1, 2022, Devin Welf collected $32,000 for consulting services to be performed evenly from December 1, 2023, through March 31, 2023,
6. Devin Wolf performed consulting services for a client in December 2022. The client will be billed $4,200
7. Devin Wolf pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for
the week ending December 26. All employees worked the last 3 days of 2022.
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