ch4 accounting

ch4 accounting - E Hutson Pastries purchased a new delivery...

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Unformatted text preview: E. Hutson Pastries purchased a new delivery van on July 1, 2007, for $35,000. The van's depreciation is estimated at $7,000 per year. The company has a fiscal year-end of June 30. Requirement 1: How much depreciation expense will be shown on the income statement for the year ending June 30, 2010? (Omit the "$" sign in your response.) Depreciation expense $ 7000 (17%) per year Requirement 2: What is the book value (also called carrying value) of the truck on the balance sheet for each of the five years beginning with June 30, 2008? (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Book Value Amount 6/30/2008 $ 28000 (17%) 6/30/2009 21000 (17%) Feedback: Book Value Purchase Price $ 35,000 Accumulated depreciation 2008 (7,000 ) $ 28,000 6/30/2008 Accumulated depreciation 2009 (14,000 ) 21,000 6/30/2009 Accumulated depreciation 2010 (21,000 ) 14,000 6/30/2010 Accumulated depreciation 2011 (28,000 ) 7,000 6/30/2011 Accumulated depreciation 2012 (35,000 )- 6/30/2012 Question 2: Score 5/5 Your response Florida's Number One Credit Solution Organization started the year with $1,850 of prepaid rent, $25,000 cash, and $26,850 of retained earnings. During the year, Florida paid additional rent in advance amounting to $16,275. The rent expense for the year was $16,850. Requirement 1: Give the journal entry for the rent payment and the adjusting journal entry to record the rent expense. (Omit the "$" sign in your response.) S. No. General Journal Debit Credit 1. Prepaid rent (4%) 16275 (4%) Cash (4%) 16275 (4%) Adjusted journal entry S.No. General Journal Debit Credit 2. Rent expense (4%) 16850 (4%) Prepaid rent (4%) 16850 (4%) Requirement 2: Post the opening balances to the T-acounts, then, post the transactions to T-accounts. (Record the transactions in the given order. Omit the "$" sign in your response.) Cash Beg. Bal. 25000 (4%) 1. (4%) 16275 (4%) End. Bal. 8725 (4%) Prepaid Rent Beg. Bal. 1850 (4%) 2. (4%) 16850 (4%) 1. (4%) 16275 (4%) End. Bal....
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ch4 accounting - E Hutson Pastries purchased a new delivery...

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