At the end of July, Tony took a complete inventory of his supplies and found the following:
5 dozen ¼” screws at a cost of $8 a dozen
2 dozen ½” screws at a cost of $5 a dozen
2 cartons of computer inventory paper at a cost of $14 a carton
3 metres of coaxial cable at a cost of $4 per metre

After speaking to his accountant, he found that a reasonable depreciation amount for each of his long-term assets is as follows:

Tony uses the straight-line method of depreciation and declares no salvage value for any of the assets. If any long-term asset is purchased in the first 15 days of the month, he will charge depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not charge depreciation in the month it was purchased. July’s rent has now expired.

Assignment
Use your trial balance from the completed problem in Chapter 3 and the above adjusting information to complete the worksheet for the three months ended July 31, 2022. From the worksheets, prepare the financial statements. Then journalize and post the adjusting entries.

Transcribed Image Text:

Computer purchased May 6, 2022 Office equipment purchased May 16, 2022 Computer workstations purchased July 17, 2022 Depreciation $33 a month Depreciation $10 a month Depreciation $20 a month