Prepare the journal entries to record the following adjustment information of September 30, 2019 and at the same time the Adjusted Trial Balance. Write your answer in a two-column journal and in an 8-column worksheet. a. One month of scheduled advertising appeared in the school newspaper in the amount of P150. b. An inventory of Ironing supplies revealed approximately P50 onhand. c. Depreciation was taken on equipment with a useful life of 5 years. Ironing equipment costs P600. d. On Thursday, October 1, Linda would pay her first employee, who worked Tuesday and Thursdays, P120 for the week. e. Ironing services for one of the two students who had paid in advance had been performed as of 9/30/2019. f. On Tuesday, September 29, services had been finished for 2 students who promised to pay P50 each on 10/5/2019
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.
Prepare the
of September 30, 2019 and at the same time the Adjusted
your answer in a two-column journal and in an 8-column worksheet.
a. One month of scheduled advertising appeared in the school newspaper
in the amount of P150.
b. An inventory of Ironing supplies revealed approximately P50 onhand.
c. Depreciation was taken on equipment with a useful life of 5 years. Ironing
equipment costs P600.
d. On Thursday, October 1, Linda would pay her first employee, who worked
Tuesday and Thursdays, P120 for the week.
e. Ironing services for one of the two students who had paid in advance had
been performed as of 9/30/2019.
f. On Tuesday, September 29, services had been finished for 2 students who
promised to pay P50 each on 10/5/2019
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