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- Complete the worsheet one section at a time, beginning with the Adjustments columns. For the Adjustments columns use the appropriate letters a. through d. as posting references. For the Income Statement and Balance Sheet columns, remember to include the net income or loss after the totals and then total the columns again. (If a box is not used in the worksheet, leave the box empty; do not enter a zero. Abbreviations used: Acc. = Acccumulated; Adj. = Adjusted; Depr. = Depreciation; Stmt. = Statement.) Mullen Co. Worksheet For Year Ended December 31, 201X Trial Balance Adjustments Account Dr. Cr. Dr. Cr. Cash 7 Accounts Receivable 3 Merchandise Inventory 9 Store Supplies 7 Store Equipment 20 Acc. Depr., Store Equipment…For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (A) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain. (B) When should an entry be made to remove the cost and the accumulated depreciation from the accounts? Please use at least 150 words to explain to avoid getting a bad grade.Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting entries for annual financial statements. Boland computes depreciation and records it as: Depreciation Expense - Equip. . . . . . 123,000 Accumulated Depreciation - Equip. 123,000 Smith agrees with her computation but says the credit entry should be directly to the Equipment account. Smith argues that while accumulated depreciation is technically correct, "it is less hassle not to use a contra account and just credit the Equipment account directly. And besides, the balance sheet shows the same amount for total assets under either method." Required: 1. How should depreciation be recorded? Do you support Boland or Smith? 2. Evaluate the strengths and weaknesses of Smith's reasons for preferring her method. 3. Indicate whether the situation B
- Please answer determine the balances of the following for the year ended December 31, 2026. a. Depreciation of building b. Depreciation of machinery. Please show solutions in good accounting form. Please make your answer original not copy-paste. thank youFor each of the following statements indicate if the statement is true or false. In your answer book you need only write the number of the statement and whether it is True or False. For example, Q.1.1.11 – True Q.1.1.1 Depreciation is classified as an asset. Q.1.1.2 Depreciation is the adjustment at the beginning of the year. Q.1.1.3 Accumulated depreciation is classified as a negative asset. Q.1.1.4 Periodic method is a method used to calculate depreciation. Q.1.1.5 According to the diminishing balance method annual depreciation is calculated as a percentage of the carrying value of the asset. Q.1.1.6 The accrual concept stipulates that all expenses must be assigned to the financial period in which they are incurred. Q.1.1.7 Accrued expense is classified as a current liability. Q.1.1.8 Accrued income is classified as income. Q.1.1.9 Doubtful debts should be based on an age analysis. Q.1.1.10 The allowance/provision for credit losses is based on an estimate and…Please dont copy past other answers from other websites. They are wrong. This is an activity in my workbook and is not for marks. The second picture is the layout of the answer. I need help with how to write the answer in the layout that's in my textbook. Question: Journalise ALL the above transactions for the year ended 28 February 2021 inthe General Journal including the year-end adjustment entries for depreciation.Round off to the nearest RandNarrations are not required
- Parts B and C is where the assistance is needed The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal entry for the sale of the…at the end of the accounting period(sept 30th, T account after AJE), what is the balance of accumulated depreciation costumes? use accural accounting multiple choice: a) $25 Neutral Balance, b) $0, c) $25 debit balance, d) $25 credit balance, e) none of the other alternatives are correctWhat adjusting journal entry is needed to record depreciation expense for the period? A. a debit to Depreciation Expense; a credit to Cash B. a debit to Accumulated Depreciation; a credit to Depreciation Expense C. a debit to Depreciation Expense; a credit to Accumulated Depreciation D. a debit to Accumulated Depreciation; a credit to Cash
- Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting entries for annual financial statements. Boland computes depreciation and records it as Depreciation Expense—Equipment 123,000 Accumulated Depreciation—Equipment 123,000 Smith agrees with her computation but says the credit entry should be directly to the Equipment account. Smith argues that while accumulated depreciation is technically correct, “it is less hassle not to use a contra account and just credit the Equipment account directly. And besides, the balance sheet shows the same amount for total assets under either method.” Required 1. How should depreciation be recorded? Do you support Boland or Smith? 2. Evaluate the strengths and weaknesses of Smith’s reasons for preferring her method. 3. Indicate whether the situation Boland faces is an ethical problem. Explain.You are presented with the following trial balance of Carl Ltd at 31 October 2018. DrCr R,000Building at costBuildings, accumulated depreciation, 1 November 2018 Plant at costPlant, accumulated depreciation, 1 November 2018 Land at costBank balanceRevenuePurchasesDiscounts receivedReturns inwardsWagesEnergy expensesTrade PayablesTrade ReceivablesInventory at 1 November 2018Allowance for debtors at 1 November 2018 Administrative expensesDirector's remunerationAccumulated profit at 1 November 201810% DebentureDividend paidR1 Ordinary sharesShare premium accountR,000 74060 220110 23550 1,8001,1059035 180 105250 3201601080 70306503,28080 3,280130 50Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost, allocated 30%…Ginger Ltd is completing its financial statements for the year ended 30 June 2020. In undertaking the accounting work, it becomes apparent that a vehicle that was thought to be on hand at the end of the previous financial year had actually been destroyed in a storm on 21 May 2019. The vehicle had a cost of $64,000 and accumulated depreciation of $16,000. Required: Provide the accounting entries to account for the discover of this prior period error in accordance with IAS 8 / AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. Ignore the tax effect and assume that the value of the vehicle is material to Ginger Ltd. (narrations are not required). ANSWER HERE: Date Account Name Debit Credit