Tuna Co. purchased a building in 2015 for $650,000 and debited an asset called "Buildings" for the entire amount. The company never depreciated the building although it had a useful life of 15 years. At the end of 2015, this action will cause:
An adjusting entry to convert an asset to expense consists of:
The purpose of adjusting entries is to:
The concept of materiality:
The cost of insurance is considered an expense:
If Hot Bagel Co. estimates depreciation on an automobile to be $578 for the year, the company should make the following adjusting entry:Debit Depreciation Expense $578 and credit Accumulated Depreciation $578.Dividends declared:
The December 31, 2014 worksheet for Albertville Grill showed the following amounts related to the Depreciation Expense account:(a). In the Trial Balance debit column: $1,745(b). In the Adjustments debit column: $1,125(c). In the Adjusted Trial Balance debit column: $1,870What is the proper balance in the Depreciation Expense account on January 1, 2015, after all closing entries for 2014 have been posted, but before any 2015 transactions are recorded?
If sales are $282,000, expenses are $228,000 and dividends are $32,000, Income Summary:Will have a credit balance of $54,000.If current assets are $97,000 and current liabilities are $61,600, the current ratio will be: