On June 15, 2015 Alpha Company purchased Computer Systems on cash $30,500. The expected life of Computer Systems is 5 years. At the end of useful life, this asset will be sold for $2,500. The company uses Straight Line Depreciation Method for calculating depreciation of fixed assets. What Adjusting Entry of Depreciation Expense (Computer System) for the month of June 2015 will be recorded? For each of the following situations, record an adjusting entry at the end of each month. On June 15, 2015 Alpha Company purchased Computer Systems on cash $30,500. The expected life of Computer Systems is 5 years. At the end of useful life, this asset will be sold for $2,500. The company uses Straight Line Depreciation Method for calculating depreciation of fixed assets. What Adjusting Entry of Depreciation Expense (Computer System) for the month of June 2015 will be recorded? Travelers Chronicles is a magazine which prints information about different tourism and popular travelling destinations. The magazine takes advance cash from its subscribers for the whole year and then sends magazines via courier each month. On October 2016, the accounting record shows an amount of $850,000 as Unearned Subscription Revenue. During the month, Travel Chronicles send 8,345 magazines to subscribers via courier. If magazine price is $35.50, how much Subscription Revenue for month of October, 2016 will be recorded in the adjusting entry? Paper Works Company produces and sells Office Stationery products. The company pays wages to its workers on every Saturday (6 day work week). The weekly payroll of the Company is $66,000. The year ends (December 31) on Thursday. What adjusting entry for Accrued Wages will be recorded by the accountant on 31-Dec?
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.
On June 15, 2015 Alpha Company purchased Computer Systems on cash $30,500. The expected life of
Computer Systems is 5 years. At the end of useful life, this asset will be sold for $2,500. The company
uses
Entry
For each of the following situations, record an adjusting entry at the end of each month.
On June 15, 2015 Alpha Company purchased Computer Systems on cash $30,500. The expected life of
Computer Systems is 5 years. At the end of useful life, this asset will be sold for $2,500. The company
uses Straight Line Depreciation Method for calculating depreciation of fixed assets. What Adjusting
Entry of Depreciation Expense (Computer System) for the month of June 2015 will be recorded?
Travelers Chronicles is a magazine which prints information about different tourism and popular
travelling destinations. The magazine takes advance cash from its subscribers for the whole year and
then sends magazines via courier each month. On October 2016, the accounting record shows an amount
of $850,000 as Unearned Subscription Revenue. During the month, Travel Chronicles send 8,345
magazines to subscribers via courier. If magazine price is $35.50, how much Subscription Revenue for
month of October, 2016 will be recorded in the adjusting entry?
Paper Works Company produces and sells Office Stationery products. The company pays wages to its
workers on every Saturday (6 day work week). The weekly payroll of the Company is $66,000. The year
ends (December 31) on Thursday. What adjusting entry for Accrued Wages will be recorded by the
accountant on 31-Dec?
On 1-April-2012, Orient Airlines borrowed cash from bank by signing a 5 year Notes Payable of
$8,000,000. The interest rate on the Notes Payable is 2.25% per annum. The loan amount and interest
are payable at 31 March 2017. What adjusting entry will be recorded for Accrued Interest Expense on
30-April-2012?
The beginning balance for Office Stationery at a XYZ Company for January 2019 is $350,000. During
the month, the company purchased Office Stationery for $400,000 (half on cash, half on credit). On 31st
January 2019, the company’s store has Office Stationery for $200,000. What adjusting entry will be
recorded for Office Supplies Expense on 31-January-2019?
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