On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvagevalue If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 willaffect the Company's financial statements?A.B.C.D.AssetsCash + Truck -NA. NA+ NA+ NA -+ NANANANAMultiple ChoiceOOption AOption BOption COption DBalance sheetAcc. Dep.30,00030,00010,00010,000==Liab. +NA *M NA+► NA .- NA +Income StatementExp. = Net Inc.NA -30,000- (30,000)NA 10,000 (10,000)NA -10,000- (10,000) (10,000) OA-10,000NA(10,000)NAEquity Rev.30,00010,00010,000(10,000)Cash FlowStatementNANA

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Description: On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvagevalue If Marino uses the straight-line method, which of the following shows how the adjust

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On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company's financial statements? Balance sheet Cash +Truck- NA - NA + NA - NA + NA NA A. NA B. C. D. .. + Assets Multiple Choice 22 NA Option A Option B Option C Acc. Dep. =Liab. + 30,000 M NA * 30,000 M NA • 10,000 NA + 10,000 . NA Equity Rev. 30,000 NA 10,000 NA 10,000 NA (10,000) NA Income Statement Exp. = -30,000- 10,000 -10,000 - -10,000 Net Inc. (30,000) (10,000) (10,000) (10,000) Cash Flow Statement NA NA (10,000) 04 NA

On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the straight-line method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company's financial statements? Balance sheet Cash +Truck- NA - NA + NA - NA + NA NA A. NA B. C. D. .. + Assets Multiple Choice 22 NA Option A Option B Option C Acc. Dep. =Liab. + 30,000 M NA * 30,000 M NA • 10,000 NA + 10,000 . NA Equity Rev. 30,000 NA 10,000 NA 10,000 NA (10,000) NA Income Statement Exp. = -30,000- 10,000 -10,000 - -10,000 Net Inc. (30,000) (10,000) (10,000) (10,000) Cash Flow Statement NA NA (10,000) 04 NA

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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