Shipping costs (paid by 500 Plummer) 1,000 500 Renovation costs prior to use 2,500 1,000 1,500 By the end of the first year, each machine had been operating 4,800 hours. Prepare the entry to record depreciation expense at the end of Year 1, assuming the fo ote: Do not round intermediate calculations. If no entry is required for a transaction/e quired" in the first account field. ESTIMATES Residual achine Life Value Depreciation Method A 5 years $1,000 Straight-line 60,000 Units-of- B 2,000 hours production ப C 4 years 1,500 Double-declining-
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Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
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Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo
Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The
machines immediately were overhauled and started operating. The machines were different; therefore, each
had to be recorded separately in the accounts.
Machine Machine Machine
Invoice price paid for
asset
Shipping costs (paid by
Plummer)
A
B
C
$11,000 $30,000 $8,000
500 1,000
500
Renovation costs prior
to use
2,500
1,000 1,500
By the end of the first year, each machine had been operating 4,800 hours.
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.
ESTIMATES
Residual
Machine
Life
Value
Depreciation
Method
A
5 years
$1,000
Straight-line
60,000
Units-of-
B
2,000
hours
production
с
4 years
1,500
Double-declining-
balance
View transaction list
Journal entry worksheet
<
1
Record the depreciation expense for year 1.
Note: Enter debits before credits.
Transaction
a
General Journal
Debit Credit
Record entry
View general journal
Clear entry
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