The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 6,033 Accounts Receivable 2,968 Prepaid Expenses 686 Equipment 14,726 Accumulated Depreciation 12,537 Accounts Payable 1,748 Notes Payable 5,609 Common Stock 1,000 Retained Earnings 2,843 Dividends 948 Fees Earned 6,469 Wages Expense 3,405 Rent Expense 750 Utilities Expense 356 Depreciation Expense 246 Miscellaneous Expense 88 Totals 30,206 30,206 Determine the total liabilities for the period.
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 6,033 Accounts Receivable 2,968 Prepaid Expenses 686 Equipment 14,726 Accumulated Depreciation 12,537 Accounts Payable 1,748 Notes Payable 5,609 Common Stock 1,000 Retained Earnings 2,843 Dividends 948 Fees Earned 6,469 Wages Expense 3,405 Rent Expense 750 Utilities Expense 356 Depreciation Expense 246 Miscellaneous Expense 88 Totals 30,206 30,206 Determine the total liabilities for the period.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 5MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at...
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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.
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