MY Autobody's adjusted trial balance on December 31, 2023, appears in the work sheet as follows: Credit No. 101 Cash Debit $ 29,000 124 2,300 128 Prepaid insurance 167 168 201 210 301 302 Shop supplies 623 637 640 650 690 Account Equipment Accumulated depreciation, equipment Accounts payable Wages payable Mike Yang, capital Mike Yang, withdrawals Repair revenue 401 612 Depreciation expense, equipment Wages expense Insurance expense Rent expense Office supplies expense Utilities expense Totals 5,200 93,000 41,000 9,500 105,500 2,400 57,350 $ 8,500 20,000 9,860 150,000 166,630 5,800 3,940 $354,990 $354,990 There were no investments by the owner during the year. Prepare an income statement for the year ended December 31, 2023. Prepare an income statement for the year ended December 31, 2023.
MY Autobody's adjusted trial balance on December 31, 2023, appears in the work sheet as follows: Credit No. 101 Cash Debit $ 29,000 124 2,300 128 Prepaid insurance 167 168 201 210 301 302 Shop supplies 623 637 640 650 690 Account Equipment Accumulated depreciation, equipment Accounts payable Wages payable Mike Yang, capital Mike Yang, withdrawals Repair revenue 401 612 Depreciation expense, equipment Wages expense Insurance expense Rent expense Office supplies expense Utilities expense Totals 5,200 93,000 41,000 9,500 105,500 2,400 57,350 $ 8,500 20,000 9,860 150,000 166,630 5,800 3,940 $354,990 $354,990 There were no investments by the owner during the year. Prepare an income statement for the year ended December 31, 2023. Prepare an income statement for the year ended December 31, 2023.
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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Transcribed Image Text:Prepare a statement of changes inequity for the year ended December 31, 2023.
Mike Yang, capital, January 1
Mike Yang, capital, December 31
MY AUTOBODY
Statement of Changes in Equity
For Year Ended December 31, 2023
Prepare a balance sheet at December 31, 2023.
Current assets:
Total assets
Total current assets
Property, plant and equipment:
Current liabilities:
MY AUTOBODY
Balance Sheet
December 31, 2023
Assets
Liabilities
Transcribed Image Text:MY Autobody's adjusted trial balance on December 31, 2023, appears in the work sheet as follows:
Credit
No.
101 Cash
302
401
612
623
124
128 Prepaid insurance
167
Equipment
168 Accumulated depreciation, equipment
201
Accounts payable
210
Wages payable
301
Mike Yang, capital
Mike Yang, withdrawals
Repair revenue
Depreciation expense, equipment
Shop supplies
637
640
650
690
Account
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Totals
Revenues:
Operating expenses:
Debit
$ 29,000
2,300
5,200
93,000
There were no investments by the owner during the year.
Prepare an income statement for the year ended December 31, 2023.
Prepare an income statement for the year ended December 31, 2023.
Total operating expenses
$ 8,500
20,000
9,860
150,000
166,630
41,000
9,500
105,500
2,400
57,350
5,800
3,940
$354,990 $354,990
MY AUTOBODY
Income Statement
For Year Ended December 31, 2023
4
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