The Golden Petting Zoo operates a drive-through tourist attraction in Colorado. The company adjusts its accounts at the month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The ac balance shows the following Prepaid Rent $22.320 Buildings 52,080 Accumulated Depreciation-Buildings 6,820 Unearned Ticket Revenue 744 Other data:
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.
An adjusted trial balance is a list of the ending balances of all accounts after adjusting entries have been prepared. These entries are included to correct errors in the first version of the trial balance and to bring the entity's income reports into compliance with an accounting standard. The adjusted trial balance is essentially a summary-balance listing of all the accounts in the general ledger after all adjustments are made; it does not show any detail transactions that comprise the ending balances in any accounts. The adjusted trial balance is critical in the latter case; financial statements could be constructed without it.
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