Given is the Trial Balance of ABC Corporation for the period ending December 31, 2020: ABC CORPORATION Trial Balance December 31, 2020 DEBIT CREDIT Cash 3,425 Accounts Receivable 7,000 Supplies 1,270 Prepaid Insurance 620 Office Equipment 51,650 Accumulated Depreciation - Office Equipment Accounts Payable Unearned Fees ABC, Capital 5,200 ABC, Drawings Fees Earned 22,415 Salaries Expense Rent Expense 4,200 2,715 Utilities Expense Miscellaneous Expense 1,505 100,000 The data needed to determine year-end adjustments are as follows: a. Supplies on hand at year-end, are P380. b. Insurance premiums expired during the year are P315. c. Depreciation of equipment during the year is P4,950. d. Wages accrued but not paid at year-end, are P440. e. Accrued fees earned but not recorded at December 31, 2020 are P1,000. f. Unearned fees on July 31, 2006, are P750. g. No additional investments were made during the period. Instructions 1. Enter the trial balance on a ten-column work sheet and complete the work sheet (Unadjusted, Adjustments, Adjusted, Income Statement, Balance Sheet) 2. Prepare an income statement, a statement of owner's equity and a balance sheet in good form. 3. On the basis of the data in the work sheet, journalize the closing entries. 9,700 925 1,250 29,000 59,125 100,000
Given is the Trial Balance of ABC Corporation for the period ending December 31, 2020: ABC CORPORATION Trial Balance December 31, 2020 DEBIT CREDIT Cash 3,425 Accounts Receivable 7,000 Supplies 1,270 Prepaid Insurance 620 Office Equipment 51,650 Accumulated Depreciation - Office Equipment Accounts Payable Unearned Fees ABC, Capital 5,200 ABC, Drawings Fees Earned 22,415 Salaries Expense Rent Expense 4,200 2,715 Utilities Expense Miscellaneous Expense 1,505 100,000 The data needed to determine year-end adjustments are as follows: a. Supplies on hand at year-end, are P380. b. Insurance premiums expired during the year are P315. c. Depreciation of equipment during the year is P4,950. d. Wages accrued but not paid at year-end, are P440. e. Accrued fees earned but not recorded at December 31, 2020 are P1,000. f. Unearned fees on July 31, 2006, are P750. g. No additional investments were made during the period. Instructions 1. Enter the trial balance on a ten-column work sheet and complete the work sheet (Unadjusted, Adjustments, Adjusted, Income Statement, Balance Sheet) 2. Prepare an income statement, a statement of owner's equity and a balance sheet in good form. 3. On the basis of the data in the work sheet, journalize the closing entries. 9,700 925 1,250 29,000 59,125 100,000
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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Module 07 - Fun...
Given is the Trial Balance of ABC Corporation for the period ending December 31, 2020:
ABC CORPORATION
Trial Balance
December 31, 2020
DEBIT
CREDIT
Cash
3,425
Accounts Receivable
7,000
Supplies
1,270
Prepaid Insurance
620
Office Equipment
51,650
Accumulated Depreciation - Office Equipment
9,700
Accounts Payable
925
Unearned Fees
1,250
ABC, Capital
29,000
5,200
ABC, Drawings
Fees Earned
59,125
Salaries Expense
22,415
Rent Expense
4,200
Utilities Expense
2,715
Miscellaneous Expense
1,505
100,000
100,000
The data needed to determine year-end adjustments are as follows:
a. Supplies on hand at year-end, are P380.
b. Insurance premiums expired during the year are P315.
c. Depreciation of equipment during the year is P4,950.
d. Wages accrued but not paid at year-end, are P440.
e. Accrued fees earned but not recorded at December 31, 2020 are P1,000.
f. Unearned fees on July 31, 2006, are P750.
g. No additional investments were made during the period.
Instructions
1. Enter the trial balance on a ten-column work sheet and complete the work sheet (Unadjusted,
Adjustments, Adjusted, Income Statement, Balance Sheet)
2. Prepare an income statement, a statement of owner's equity and a balance sheet in good form.
3. On the basis of the data in the work sheet, journalize the closing entries.
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