question the accountant for get your motor runnin 39 is preparing the 3rdquarter fin 4276523
Question
The accountant for Get Your Motor Runnin' is preparing the 3rdquarter financial statements and has asked for your help inpreparing the adjusting entries for depreciation of the company'sfixed assets.
1. The equipment purchased on March 1 is expected to have auseful life of 5 years and a salvage value of $10,000.
2. The equipment purchased on Aug 5 is expected to have a usefullife of 5 years and a salvage value of $3,750.
3. The truck and trailer purchased on Aug 5 are expected to havea useful life of 5 years or 100,000 miles and a salvage value of$5,000. During the 3rd quarter, 2,000 miles were put on thetruck/trailer.
4. The building purchased on Aug 1 is expected to have a usefullife of 20 years and a salvage balue of $84,375.
5. The parking lot purchased on Aug 1 is expected to have auseful life of 10 years and a salvage value of $750.
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GENERAL LEDGER |
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Account:EQUIPMENT |
AccountNumber: 150 |
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Date |
Explanation |
Post. Ref. |
Debit |
Credit |
Balance |
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1-Mar |
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J1 |
$50,000 |
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$50,000 |
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5-Aug |
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J5 |
$15,000 |
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$65,000 |
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GENERALLEDGER |
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Account: LandImprovements (Parking Lot) |
Account Number: 170 |
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Date |
Explanation |
Post. Ref. |
Debit |
Credit |
Balance |
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1-Aug |
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J5 |
$18,750 |
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$18,750 |
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GENERALLEDGER |
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Account:Vehicles |
AccountNumber: 180 |
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Date |
Explanation |
Post. Ref. |
Debit |
Credit |
Balance |
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5-Aug |
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J5 |
$35,000 |
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$35,000 |
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GENERALLEDGER |
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Account: Land |
Account Number: 190 |
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Date |
Explanation |
Post. Ref. |
Debit |
Credit |
Balance |
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1-Aug |
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J5 |
$46,875 |
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$46,875 |
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