[AdanChin]

Hi, I have some balance day adjustments that I need to record, wondering if some of you could help me?

1. An apprentice is paid $200 a week. He is owed two weeks wages.

2. The business has use of a motor vehicle purchased 1 January 2010, at a cost of $32,000. It has an expected life of 4 years and an estimate trade-in value of $4000. Straight-line depreciation is used.

3. Supplies on hand 1 January 2012 were valued at $300, and supplies on hand 30 June were 2012 were valued at $550.



with question 1, is this the right entry?:
Wages expenses Dt
Wages payable Cr

Question 2, (32,000-4,000) / 4 years = $7,000 Per Annum. According to straight line depreciation. What I don't know is, does the date have anything to do with it? And how do I record this transaction?


Question 3, Is this the right entry?:
Supplies expenses Dt
Supplies Cr


I'm pretty sure I have questions 1 and 3 correct, just need you guys to verify it for me, but I really have a problem when it comes to depreciation, can someone please help?

[JudyKayTee]

Hi, i have some balance day adjustments that i need to record, wondering if some of you could help me?

1. An apprentice is paid $200 a week. He is owed two weeks wages.

2. The business has use of a motor vehicle purchased 1 january 2010, at a cost of $32,000. It has an expected life of 4 years and an estimate trade-in value of $4000. Straight-line depreciation is used.

3. Supplies on hand 1 january 2012 were valued at $300, and supplies on hand 30 june were 2012 were valued at $550.



with question 1, is this the right entry?:
Wages expenses Dt
Wages payable Cr

Question 2, (32,000-4,000) / 4 years = $7,000 Per Annum. according to straight line depreciation. What i dont know is, does the date have anything to do with it? and how do i record this transaction?


Question 3, Is this the right entry?:
Supplies expenses Dt
Supplies Cr


I'm pretty sure i have questions 1 and 3 correct, just need you guys to verify it for me, but I really have a problem when it comes to depreciation, can someone please help?

Please post your answers and someone will review them. AMHD does not do homework; therefore, we need your answers before we do the work.

[pready]

Number 1, this is correct

Number 2, you have to know the dates. Based on question number 3 you are doing your entries on Jun 30, so you have to account for 6 months of depreciation. So continue with your solution of $(32,000 cost - 4,000 salvage value)/4yrs useful life * 6 months of use /12 months. Your accounts are: Debit Depreciation Expense and Credit Accumulated Depreciation

Number 3, you may be missing information like supplies purchased during the time, your amounts could be wrong, or you are missing your supplies account balance on 30 Jun because the information provided seems like an actual physical count balance instead of an account balance. If your account balance is $600 then you would have to do an ajusting entry to bring your account balance into agreement with your physical balance and your adjusting entry is correct. Debit Supplies Expense for $50 and Credit Supplies for $50. Now your Supplies account balance is $550.