Chapter 2, Problem 2.9P

Required: 1. Prepare general journal entries to record the preceding transactions. 2. Post to general ledger T-accounts. 3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information: (a) accrued salaries at year-end total $1,000. (b) for simplicity, the building and equipment are being depreciated using the straight- line method over an estimated life of 20 years with no residual value. (c) supplies on hand at the end of the year total $600. (d) bad debts expense for the year totals $610; and (e) the income tax rate is 30%; income taxes are payable in the first quarter of 2017.

UCF Diner bought a delivery truck on 1/1 at a cost of $40,000, an estimated salvage (residual) value of $8,000, and an estimated useful life of 5 years. The truck is being depreciated on a straight-line basis. At the end of the first year (12/31), what amount will be reported for depreciation expense? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 E3 f5 f6 f7 f8 f9 f10 f11 团 4. 5 7 8 Y U 因 96 图 立 R 图 %24

On May 1, a commercial baking company purchased a commercial oven on account. The oven costs $40,000, has a life of 5 years, and has no salvage value. The company ordinally uses straight-line depreciation. The company recorded the following transaction. Debit equipment maintenance expense $40,000; credit Accounts payable $40,000. The company paid for the oven in June. If the company does not correct this error before December 31, which impact will the error have on the balance sheet? Property. plant, and equipment (PP&E) will be understated Operating expenses will be understated Property. plant and equipment (PP&E) will be overstated Accumulated depreciation will be overstated A hospital accidentally invoiced a patient twice for the same treatment, which cost $800. The patient received two invoices and paid them both. The hospital recorded $1,600 of revenue and $1,600 of payments. If the books have not been closed for this period, which entry would correct the hospital's error? • Debit…