B. Selected unadjusted account balance from the trial balance of Jim Crickets Cleaners for the year December 31, 2016 are as follows: With Computation Jim Cricket Cleaners Partial Unadjusted Trial Balance December 31, 2016 Debits Credits Cash P 18,000 Prepaid Rent Equipment Accumulated Depreciation - Equipment Notes Payable Unearned Income 86,400 36,000 P 14,400 18,000 8,100 Adjustment data for December 31,2016 as follow: a. Prepaid rent represents 18-month office rent paid last February 01, 2016 b. The equipment was purchased on account last September 30,2014. It has an estimated salvage value of P 3,600 and is expected to have a useful life of 3 years. Straight-line method of depreciation will be used. c. The balance in Notes Payable represents a 60-day, 12% interest-bearing note dated December 1,2016. d. Last August 31, Jim Crickets Cleaners received a check amounting to P 8,100 as payment for nine months cleaning service. Required: Give the adjusting journal entries on December 31, 2016.

B. Selected unadjusted account balance from the trial balance of Jim Crickets Cleaners for the year December 31, 2016 are as follows: With Computation Jim Cricket Cleaners Partial Unadjusted Trial Balance December 31, 2016 Debits Credits Cash P 18,000 Prepaid Rent Equipment Accumulated Depreciation - Equipment Notes Payable Unearned Income 86,400 36,000 P 14,400 18,000 8,100 Adjustment data for December 31,2016 as follow: a. Prepaid rent represents 18-month office rent paid last February 01, 2016 b. The equipment was purchased on account last September 30,2014. It has an estimated salvage value of P 3,600 and is expected to have a useful life of 3 years. Straight-line method of depreciation will be used. c. The balance in Notes Payable represents a 60-day, 12% interest-bearing note dated December 1,2016. d. Last August 31, Jim Crickets Cleaners received a check amounting to P 8,100 as payment for nine months cleaning service. Required: Give the adjusting journal entries on December 31, 2016.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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