Give two examples of fixed assets that you believe should be depreciated with different methods. Do not identify the appropriate methods.© BrainMass Inc. brainmass.com October 17, 2018, 12:56 pm ad1c9bdddf
These two assets are 1) building used for a company's headquarters, and 2) land which is being mined by a mining company. Both the building and the land should be depreciated based on their useful lives and the 'amount' of usage in a given accounting period. This amount of usage is where the depreciation ...
This response provides examples that can be depreciated differently.
Financial Accounting - Adjusting journal entries
On November 1, 2010 the following were the account balances of Montana Equipment Repair.
Cash $2,790 Accumulated Depreciation $500
Accounts Receivable $2,910 Accounts Payable $2,300
Supplies $1,120 Unearned Service Revenue$400
Store Equipment 10,000 Salaries Payable $620
Common Stock $10,000
Retained Earnings $3,000
During November the following summary transactions were completed.
Nov. 8 Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.
10 Received $1,500 cash from customers in payment of account.
12 Received $1,700 cash for services performed in November.
15 Purchased store equipment on account $4,000.
17 Purchased supplies on account $1,300.
20 Paid creditors $2,500on accounts payable due.
22 Paid November rent $450.
25 Paid salaries $1,000.
27 Performed services on account and billed customers for services provided $900.
29 Received $550 from customers for services to be provided in the future.
1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Unearned service revenue of $300 is earned.
(a) Enter the November 1 balances in the ledger accounts. (Use T accounts.)
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries Expense, and Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.