90.2K

Verified Solution

Link Copied!

2. A computer was purchased for $3400 on January 1, 2019. It has an estimated life of 5 years at which time it could be sold for $400. Prepare a table, indicating its value at the beginning of the year, the amount of depreciation allowable each year, the depreciation that has built up (accumulated) since the purchase, and its value at the end of the year. (8 marks) Start of Yearly depreciation End of year Accumulated depreciation year value value 2019 $3400 2020 2021 2022 2023 Record the journal entry that would appear on December 31, 2019: General Journal Page 1 Date Particulars P.R. Debit Credit 3. Prepare adjusting journal entries for the year ended December 31, 2019, for each of the independent situations (a) to (d): (8 marks) a. Employees have earned wages of $1500, but nothing has been recorded yet since it isn't the end of the work week, or payday. b. Consulting work valued at $5000 has been completed, but nothing has been recorded yet since the job isn't finished and invoices have not been created. c. The Office Supplies account had a balance of $234 on January 1, 2019. During the year, and additional $788 worth of supplies were purchased. A count of the supplies at year-end showed a value of $565 in stock. d. One third of the work for a $12,000 fee (received in advance) has been completed. General Journal Page 16 Date Particulars P.R. Debit Credit Credit Debit $10,750 6,200 475 10,900 23,400 $ 6,250 11,350 No. Account 101 Cash 103 Accounts receivable 126 Supplies 141 Notes receivable, due January 1, 2023 167 Equipment 168 Accumulated depreciation, equipment 194 Copyright 201 Accounts payable 203 Unearned revenues 250 Long-term notes payable 300 Hassan Amir, capital 301 Hassan Amir, withdrawals 402 Revenues Rent expense 612 Wages expense 623 Interest expense 633 Depreciation expense 637 Supplies expense 4,500 13,800 18,500 44,300 36,305 74,070 610 14,800 37,000 3000 4,660 2,580 Totals $ 161,420 $ 161,420 A. Complete the closing entries. (8 marks) B. What is the updated balance in the owner's capital account? (2 marks) General Journal Page 16 Date Particulars P.R. Debit Credit 2. A computer was purchased for $3400 on January 1, 2019. It has an estimated life of 5 years at which time it could be sold for $400. Prepare a table, indicating its value at the beginning of the year, the amount of depreciation allowable each year, the depreciation that has built up (accumulated) since the purchase, and its value at the end of the year. (8 marks) Start of Yearly depreciation End of year Accumulated depreciation year value value 2019 $3400 2020 2021 2022 2023 Record the journal entry that would appear on December 31, 2019: General Journal Page 1 Date Particulars P.R. Debit Credit 3. Prepare adjusting journal entries for the year ended December 31, 2019, for each of the independent situations (a) to (d): (8 marks) a. Employees have earned wages of $1500, but nothing has been recorded yet since it isn't the end of the work week, or payday. b. Consulting work valued at $5000 has been completed, but nothing has been recorded yet since the job isn't finished and invoices have not been created. c. The Office Supplies account had a balance of $234 on January 1, 2019. During the year, and additional $788 worth of supplies were purchased. A count of the supplies at year-end showed a value of $565 in stock. d. One third of the work for a $12,000 fee (received in advance) has been completed. General Journal Page 16 Date Particulars P.R. Debit Credit Credit Debit $10,750 6,200 475 10,900 23,400 $ 6,250 11,350 No. Account 101 Cash 103 Accounts receivable 126 Supplies 141 Notes receivable, due January 1, 2023 167 Equipment 168 Accumulated depreciation, equipment 194 Copyright 201 Accounts payable 203 Unearned revenues 250 Long-term notes payable 300 Hassan Amir, capital 301 Hassan Amir, withdrawals 402 Revenues Rent expense 612 Wages expense 623 Interest expense 633 Depreciation expense 637 Supplies expense 4,500 13,800 18,500 44,300 36,305 74,070 610 14,800 37,000 3000 4,660 2,580 Totals $ 161,420 $ 161,420 A. Complete the closing entries. (8 marks) B. What is the updated balance in the owner's capital account? (2 marks) General Journal Page 16 Date Particulars P.R. Debit Credit

Answer & Explanation Solved by verified expert

See Answer