The adjusted trial balance for Waterway Design Company at December 31, 2024, which is the end of its fiscal year, is as follows: Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation-equipment WATERWAY DESIGN COMPANY Adjusted Trial Balance December 31, 2024 Accounts payable Salaries payable Unearned revenue H. Waterway, capital H. Waterway, drawings Service revenue Salaries expense Supplies expense Rent expense Insurance expense Depreciation expense Totals Debit $8,740 10,160 1,940 3,360 15,120 5,720 14,700 1,260 10,080 2,020 2,500 $75,600 Credit $5,040 5,800 1,840 1,180 13,440 48,300 $75,600
The adjusted trial balance for Waterway Design Company at December 31, 2024, which is the end of its fiscal year, is as follows: Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation-equipment WATERWAY DESIGN COMPANY Adjusted Trial Balance December 31, 2024 Accounts payable Salaries payable Unearned revenue H. Waterway, capital H. Waterway, drawings Service revenue Salaries expense Supplies expense Rent expense Insurance expense Depreciation expense Totals Debit $8,740 10,160 1,940 3,360 15,120 5,720 14,700 1,260 10,080 2,020 2,500 $75,600 Credit $5,040 5,800 1,840 1,180 13,440 48,300 $75,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:The adjusted trial balance for Waterway Design Company at December 31, 2024, which is the end of its fiscal year, is as follows:
Cash
Accounts receivable
Supplies
Prepaid insurance
WATERWAY DESIGN COMPANY
Adjusted Trial Balance
December 31, 2024
Equipment
Accumulated depreciation-equipment
Accounts payable
Salaries payable
Unearned revenue
H. Waterway, capital
H. Waterway, drawings
Service revenue
Salaries expense
Supplies expense
Rent expense
Insurance expense
Depreciation expense
Totals
Debit
$8,740
10,160
1,940
3,360
15,120
5,720
14,700
1,260
10,080
2,020
2,500
$75,600
Credit
$5,040
5,800
1,840
1,180
13,440
48,300
$75,600

Transcribed Image Text:Prepare Waterway Design Company's income statement.
WATERWAY DESIGN COMPANY
Income Statement
$
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