At the end of its first year, the trial balance of Cullumber Company shows Equipment $ 33,500 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $ 3,650. Prepare the adjusting entry for depreciation at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Post the adjustments to T-accounts. Depreciation Expense Accumulated Depreciation- Equipment Indicate the balance sheet presentation of the equipment at December 31. Cullumber Company Balance Sheet (Partial)
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- Safety First Company completed all of its October 31,2020 adjustments in preparation for preparing its financial statements which resulted in the following trial balance Other information: All accounts have normal balances $26,400 of the Notes payable balance is due by October 31, 2021 The final task in the year end process was to access the assets for impairment, which resulted in the following schedule Required: Prepare the entries to record any impairment losses at October 31, 2020. Assume the company recorded no impairment losses in the previous years Prepare a classified balance sheet at October 31, 2020 What is the impact on the financial statements of an impairment loss?On December 1, delivery equipment was purchased for $8,928. The delivery equipment has an estimated useful life of four years (48 months) and no salvage value. Question Content Area Using the straight-line depreciation method, analyze the necessary adjusting entry as of December 31 (one month) using T accounts, and then formally enter this adjustment in the general journal. DATE ACCOUNT TITLE DOC.NO. POST.REF. DEBIT CREDIT 1 20-- Dec. 31 Depr. Expense - Delivery Equipment 2 Accum. Depr. - Delivery EquipmentThe estimated amount of depreciation on equipment for the current year is $8,330. Journalize the adjusting entry, to record the depreciation. Refer to the Chart of Accounts for exact wording of account titles.
- Sheridan Company purchased equipment for $7190 on December 1. It is estimated that annual depreciation on the equipment will be $1560. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Debit Depreciation Expense, $5630; Credit Accumulated Depreciation, $5630. Debit Equipment, $7190; Credit Accumulated Depreciation, $7190. Debit Depreciation Expense, $1560; Credit Accumulated Depreciation, $1560. Debit Depreciation Expense, $130; Credit Accumulated Depreciation, $130.Queenan Company computes depreciation on delivery equipment at $1,000 for the month of June. The adjusting entry to record this depreciation should be reflected as:Bramble Company purchased equipment for $31200 on December 1. It is estimated that annual depreciation on the equipment will be $7800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: A) Debit Equipment, $31200; Credit Accumulated Depreciation, $31200. B) Debit Depreciation Expense, $650; Credit Accumulated Depreciation, $650. C) Debit Depreciation Expense, $23400; Credit Accumulated Depreciation, $23400. D) Debit Depreciation Expense, $7800; Credit Accumulated Depreciation, $7800.
- Sheffield Corp. purchased equipment for $15900 on December 1. It is estimated that annual depreciation on the computer will be $3180. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: debit Depreciation Expense, $12720; credit Accumulated Depreciation, $12720. debit Depreciation Expense, $3180; credit Accumulated Depreciation, $3180. debit Equipment, $15900; credit Accumulated Depreciation, $15900. debit Depreciation Expense, $265; credit Accumulated Depreciation, $265.Soon after December 31, 2019, the auditor requested a depreciation schedule for trucks of Jarrett Trucking Company, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2016 to 2019, inclusive. The following data were in the Trucks account as of January 1, 2016: The Accumulated DepreciationTrucks account, previously adjusted to January 1,2016, and duly entered in the ledger, had a balance on that date of 16,460. This amount represented the straight-line depreciation on the four trucks from the respective dates of purchase, based on a 5-year life and no residual value. No debits had been made to this account prior to January 1, 2016. Transactions between January 1,2017, and December 31, 2019, and their record in the ledger were as follows: 1. July 1, 2016: Truck no. 1 was sold for 1,000 cash. The entry was a debit to Cash and a credit to Trucks, 1,000. 2. January 1, 2017: Truck no. 3 was traded for a larger one (no. 5) with a 5-year life. The agreed purchase price was 12,000. Jarrett paid the other company 1,780 cash on the transaction. The entry was a debit to Trucks, 1,780, and a credit to Cash, 1,780. 3. July 1, 2018: Truck no. 4 was damaged in a wreck to such an extent that it was sold as junk for 50 cash. Jarrett received 950 from the insurance company. The entry made by the bookkeeper was a debit to Cash, 1,000, and credits to Miscellaneous Revenue, 50, and Trucks, 950, 4. July 1, 2018: A new truck (no. 6) was acquired for 20,000 cash and debited at that amount to the Trucks account. The truck has a 5-year life. Entries for depreciation had been made at the close of each year as follows: 2016, 8,840; 2017, 5,436; 2018, 4,896; 2019, 4,356. Required: 1. Next Level For each of the 4 years, calculate separately the increase or decrease in earnings arising from the companys errors in determining or entering depreciation or in recording transactions affecting trucks. 2. Prove your work by one compound journal entry as of December 31, 2019; the adjustment of the Trucks account is to reflect the correct balances, assuming that the books have not been closed for 2019.On November 30, 2019, Davis Company and the following account balances: 1. Prepare general journal entries to record preceding transactions. 2. Post to general ledger T-accou11ts. 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 $1,200; (b ) for simplicity, the building and equipment are being depreciated using the stright-line method over an estimated life of 20 years with no residual all c) supplies on hand at the end of the year total $630; (d ) bad debts expense for the year totals $830; and (e ) the income tax rate is 30%; income taxes are payable in the first quarter of 2020. 4. Prepare company's financial statements for 2019 . 5. Prepare 2019 (a) adjusting and (b) closing entries in the general journal.
- The worksheet at the end of October has P4,000 in the Trial Balance credit column for Accumulated Depreciation and has P4,750 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the Depreciation expense adjustment for the month of October? *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.The estimated amount of depreciation on equipment for the current year is $6,550. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank.