Explore BrainMass
Share

Deprciation of Fixed Assets

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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
https://brainmass.com/business/accounting/deprciation-fixed-assets-596072

Solution Preview

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 ...

Solution Summary

This response provides examples that can be depreciated differently.

$2.19
Similar Posting

Financial Accounting - Adjusting journal entries

On November 1, 2010 the following were the account balances of Montana Equipment Repair.

Debits Credits
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
______ ______
$16,820 $16,820

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.

Adjustment data:

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.

Instructions
(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.

View Full Posting Details