ohnson’s winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $4,400.
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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.
Johnson’s winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $4,400.
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- Faraday Electronic Service repairs stereos and DVD players. During the year, Faraday engaged in the following activities: On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. At December 31, Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship—November, December, and January—in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months’ advertising has been used and 1 month remains unused. 1. Prepare adjusting entries at December 31 for these four activities. If an amount box…The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total $2,840 on December 31. 2. The $247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of $78,000, 25-year life, and $9,000 residual value are to be depreciated; equipment with a cost of $44,000, 8-year life, and $2,000 residual value is also to be depreciated. The straight-line method is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by $128 and the Office Supplies account reduced by $397 for supplies used during the year. 5. The company holds a $6,000, 12% (annual rate), 6-month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total $65,000. 7. An analysis of the company insurance policies…Johnson’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: a. Johnson’s winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $4,100. b. On October 1, Johnson’s paid $1,560 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. c. Johnson’s borrowed $282,000 at a(n) 8 percent annual interest rate on April 1 of the current year to expand its boat storage facility. The loan requires Johnson’s to pay the interest quarterly until the note is repaid in three years. Johnson’s paid quarterly interest on July 1 and October 1. d. The Sanjeev family paid Johnson’s $4,020…
- show Journal entries for the following: c. A bill for $150 was received and recorded in February for repairs and maintenance consumed in the current month. d. Consulting services recorded on sales receipt number 1004 for $2500 to Surf Rider Foundation were never performed even though cash had been received. Thus, the revenue had not been earned. e. consulting services of $8500 performed performed on the last day of the month for a new customer Blazing Boards but not invoiced to the customer or recorded into the accounting records until a few days into the next month. f. depreciation expense of $575 ($75 and $500 for Equipment and Furniture & Fixtures, respectively) needed to be recorded for the month.Johnson’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: Johnson’s winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $3,900. On October 1, Johnson’s paid $720 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. Johnson’s borrowed $282,000 at a(n) 9 percent annual interest rate on April 1 of the current year to expand its boat storage facility. The loan requires Johnson’s to pay the interest quarterly until the note is repaid in three years. Johnson’s paid quarterly interest on July 1 and October 1. The Sanjeev family paid Johnson’s $4,320 on November 1…On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. 2. & 3. Record the journal entries for the above information. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- On February 14, Foster Associates Co. paid $2,100 to repair the transmission on one of its delivery vans. In addition, Foster paid $410 to install a GPS system in its van. Required: Journalize the entries for the transmission and GPS system expenditures. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.Johnson’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended on November 30. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: Johnson’s winterized (cleaned and covered) three boats for customers at the end of November but did not record the service for $2,800. On October 1, Johnson’s paid $600 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12-week contract. Johnson’s borrowed $276,000 at a(n) 8 percent annual interest rate on April 1 of the current year to expand its boat storage facility. The loan requires Johnson’s to pay the interest quarterly until the note is repaid in three years. Johnson’s paid quarterly interest on July 1 and October 1. The Sanjeev family paid Johnson’s $4,200 on November 1…An employee is paid every two weeks. She worked the last week of December and the first week of January, and got paid $2,000 on January 10th. How would this be recorded under the cash and accrual methods? Group of answer choices Under the accrual method, one-half of the amount paid - $1,000 – is an expense in December and the other half is an expense in January; under the cash method, the $2,000 is an expense in January. Under the accrual method, $2,000 is an expense in January and under the cash method $2,000 is an expense in January. Under the accrual method, $2,000 is an expense in December and under the cash method $2,000 is an expense in January
- On April 25, Richards Electric installs wiring in a new home for $2,800 on account. However, on April 27, Richards’s electrical work does not pass inspection, and Richards grants the customer an allowance of $530 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. 2. & 3. Record the journal entries for the above information. 4. Calculate net sales reported in the income statement.During December, Camp David Inc. purchased $5,000 of supplies for use in its business. At the end of December, 70% had been paid but only 20% of the supplies were still on hand. Under accrual accounting, what amounts will appear on the company’s balance sheet on December 31? supplies inventory: $5,000; accounts payable: $3,500 supplies inventory: $1,000; accounts payable: $1,500 supplies inventory: $1,000; accounts payable: $5,000 supplies inventory: $4,000; accounts payable: $1,500On January 2, Dixie, Incorporated, pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000.
