Can you assist with this? In P4-2A you are going to work with the


Question Description:

35

Can you assist with this? In P4-2A you are going to work with the concept of depreciation. See Illustration 4-8 on page 172 of our textbook to help you with this concept. Essentially depreciation is part of the matching principle. When a company purchases a piece of equipment that will be involved in its production of some sort of good that it sells, the cost of that equipment is an expense that is related to selling that good. However, under the accrual method of accounting you would NOT match the entire expense of buying that piece of equipment with the revenue that it helped produce in the same way that we have earlier learned to match expenses with revenue. Essentially items such as equipment have what is called a “useful life.” Essentially the equipment may be able to be used for years. Once this “useful life” is determined, a Company will expense the cost of such equipment over the amount of time that is the useful life. A piece of equipment may be bought for $12,000 and have a useful life of 60 months. For each month after the purchase of the equipment, 1/60thof the $12,000 will be debited to expense with a corresponding credit to accumulated depreciation for 1/60thof the $12,000. The use of the answer template is MANDATORY. The assignment will not be accepted if this template is not used when completing the assignment. Attached is a template for you to fill out when doing the assignment. This is an Excel workbook that contains two different worksheets; one worksheet for each exercise/problem this week Please use this template for week 4’s assignment and upload it when you are finished. Don’t forget to save your work after completing the template and before you upload it. Thanks. I need this by 10:00pm tomorrow… Answer template.xlsx E4-16 Prepare the 6 adjusting entries that the Bere Company made to adjust its trial balance from "Before Adjustment" to "After Adjustment." I have supplied you one half of each adjusting entry. I need you to type in the missing half of each entry and type in the dollar amounts. JE # Account Names 1 Accounts Receivable 2 Supplies 3 Prepaid Insurance 4 Accumulated Depreciation – Equipment 5 Salaries and Wages Payable 6 Unearned Rent Revenue Debit Credit P4-2A a) Prepare the adjusting journal entries for June. I have supplied you one half of each adjusting entry. I need you to type in the missing half of each entry and type in the dolla JE # Account Names Debit 1 Supplies Expense 2 Utilities Expense 3 Insurance Expense 4 Unearned Service Revenue 5 Salaries and Wages Expense 6 Accumulated Depreciation – Equipment 7 Credit Accounts Receivable b) Post the adjusting entries in part a) above to the ledger accounts using the T-accounts provided below. I have supplied you below with the T-accounts for all of the accounts in chart of accounts for Lumas Consulting. Cash Accounts Payable Service Revenue 6/30 Bal. 6/30 Bal. 6/30 Bal. Salaries and Wages Expense Accounts Receivable Unearned Service Revenue 6/30 Bal. 6/30 Bal. 6/30 Bal. Supplies 6/30 Bal. Salaries and Wages Payable 6/30 Bal. Prepaid Insurance Rent Expense 6/30 Bal. Common Stock 6/30 Bal. Depreciation Expense 6/30 Bal. 6/30 Bal. Equipment 6/30 Bal. Insurance Expense 6/30 Bal. Accumulated Depreciation – Equipment 6/30 Bal. Utilities Expense 6/30 Bal. Supplies Expense 6/30 Bal. c) Prepare the adjusted trial balance for Lumas Consulting at June 30, 2014. Hints: service revenue after adjustment should be equal to $16,300. Also, the total of debits for th trial balance will be $45,310. The total of credits for the adjusted trial balance will be $45,310 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation – Equipment Accounts Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Service Revenue Depreciation Expense Insurance Expense Utilities Expense Supplies Expense Salaries and Wages Expense Rent Expense Before Adjustment Debit Credi

Answer

35