The Trial Balance of WTF Company as follows. UNADJUSTED ADJUSTED Account Receivable 2,200 3,200 Accumulated Depreciation 13,000 17,000 Advertising Expense 0 16,300 Cash 60,000 60,000 Depreciation Expense 0 4,000 Equipment 75,000 75,000 Prepaid Advertising 17,800 1,500 Prepaid Rent 15,000 11,000 Rent Expense 0 4,000 Service Revenue 96,000 105,000 Supplies 3,200 700 Supplies Expense 2,000 4,500 Unearned Revenue 23,000 15,000 Wages Expense 38,000 45.000 Wages Payable 0 7,000 Analyze the data and prepare ADJUSTING ENTRIES
The Trial Balance of WTF Company as follows. UNADJUSTED ADJUSTED Account Receivable 2,200 3,200 Accumulated Depreciation 13,000 17,000 Advertising Expense 0 16,300 Cash 60,000 60,000 Depreciation Expense 0 4,000 Equipment 75,000 75,000 Prepaid Advertising 17,800 1,500 Prepaid Rent 15,000 11,000 Rent Expense 0 4,000 Service Revenue 96,000 105,000 Supplies 3,200 700 Supplies Expense 2,000 4,500 Unearned Revenue 23,000 15,000 Wages Expense 38,000 45.000 Wages Payable 0 7,000 Analyze the data and prepare ADJUSTING ENTRIES
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 4MCQ
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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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Transcribed Image Text:The Trial Balance of WTF Company as follows.
UNADJUSTED
ADJUSTED
Account Receivable
2,200
3,200
Accumulated Depreciation
13,000
17,000
Advertising Expense
0
16,300
Cash
60,000
60,000
Depreciation Expense
0
4,000
Equipment
75,000
75,000
Prepaid Advertising
17,800
1,500
Prepaid Rent
15,000
11,000
Rent Expense
0
4,000
Service Revenue
96,000
105,000
Supplies
3,200
700
Supplies Expense
2,000
4,500
Unearned Revenue
23,000
15,000
Wages Expense
38,000
45.000
Wages Payable
0
7,000
Analyze the data and prepare ADJUSTING ENTRIES
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