Ask Experts Questions for FREE Help !
Ask
    nikhil7av's Avatar
    nikhil7av Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 26, 2009, 02:31 PM
    Adjusting Entries .
    (1) Bridge Company keeps a small inventory of supplies used for cleaning and maintenance purposes. On January 1, 2008 the inventory of supplies on hand was $2,800. During the year, supplies purchased were debited to the supplies account in the amount of $13,500. On December 31, 2008, the inventory count of supplies in the storeroom was $1,750. Provide the journal entry to record the purchase of supplies during 2008. Provide the adjusting entry required on December 31, 2008.







    (2) Mason Company has a machine that cost $71,000. The machine has an estimated useful life of five (5) years, no residual value, and was purchased on January 1, 2009. Mason uses the straight line method of depreciation. Provide the journal entry to record the depreciation expense for the year ended December 31, 2008. What is the annual depreciation expense if the machine residual value is $6,000?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #2

    Apr 27, 2009, 05:11 PM

    1. the journal entry is: Debit supplies for the amount purchased
    Credit Cash for the amount of purchases.

    The adjusting entry is:
    Debit supplies expense for the amount of supplies used. This is cmputed as: onhand amount + purchases - ending inventory
    Credit Supplies for the amount used.

    2. the entry is: Debit Depreciation Expense for the amount of depreciation
    Credit Accumulated Depreciation for the amount of depreciaiton

    To calculate the amount of depreication using the straight line method you take the cost - the salvage value / useful life to ge the depreiation cost per year.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Adjusting Entries and Closing Entries [ 6 Answers ]

The Flash Pan Company manufactures cooking products. On August 1, 2007, the company borrowed $125,000 from creditors. Semiannual interest payments of $7,500 are to be made to creditors beginning January 31, 2008. On July 1, 2007, the company purchased a 1-year insurance policy for $10,000 and...

Preparing adjusting entries and closing entries [ 3 Answers ]

I cannot find any examples about this question on my book or anywhere else Please help.~ The following list includes selected permanent account and all of the temporary accounts from the December 31, 2008, unadjusted trial balance of Emiko Co. a business owned by Kumi Emiko. Use these account...

Journal Entries, Adjusting Entries, and Trial and Adjusted Trial Balance [ 5 Answers ]

Can anyone help me with this? I'm confused on how to post these and how to prepare the Adjusted Trial Balance. Window Washing Company opened on July 1, 2010. During July the following transactions were completed. July 1 Issued 14,456 shares of common stock for $14,456 cash. July...

Adjusting journal entries from adjusting column of work sheet [ 2 Answers ]

How can I prepare necessary adjusting journal entries (a) through (e) by using the following information from the Adjustments columns of a 10-column work sheet. Interest recievable (d)$880 Office supplies ...

Adjusting Entries [ 3 Answers ]

If I have $3,000 check that was received 2 months ago for rent. This was for 6 months rent beginning the day the check was received. So therefore, I recorded this amount of the check as a liability account titled unearned rent. So for me to adjust this entry at the end of the year it would look...


View more questions Search