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Can someone explain why the answer is C ? Thanks! A/C# Account Description Cash 100 105 110 115 120 125 130 200 205 A. Q18:
Can someone explain why the answer is "C" ? Thanks!
A/C# Account Description Cash 100 105 110 115 120 125 130 200 205 A. Q18: Quinn Spellman formed Spellman Tutoring, Inc (STI) and it has since become a popular provider of academic tutoring within the local community. You are working with the company to prepare the 20X1 financial statements and Quinn provides you with the below 12/31/20X1 account balances, all of which are normal. As indicted by the question mark, certain balances have been intentionally omitted. 210 215 220 225 Notes payable B. C. Accounts receivable Prepaid insurance expense Teaching supplies Copy Machine Accumulated depreciation Land Accounts Payable- SSC Interest Payable D. Tutoring Advance Pay Wages Payable Utilities Payable A/C # 505 125 A/C # 505 125 A/C # 505 125 Balance $? 12,000 9,000 38,000 16.000 13,320 25,000 7,000 0 0 0 0 40,000 A/C# 505 125 Consider that the company owns only a single asset, the copy machine, and STI rents all other equipment. The copy machine is depreciated using the units of production depreciation method. At the time of purchase, STI estimated a residual value equal to 10% of the asset's purchase price and estimated (per the manufacturer's guidelines) that 160,000 copies would be made during the asset's life. Assume that 14,000 copies were made in 20X1. Select the answer below that shows the 12/31/20X1 AJE for depreciation: A/C# 300 305 310 400 Tutoring Revenue 500 Advertising Expense 505 Depreciation expense 510 515 520 Account Description Depreciation Expense Accumulated Depreciation Account Description Depreciation Expense Accumulated Depreciation Account Description Depreciation Expense Accumulated Depreciation Account Description Depreciation Expense Accumulated Depreciation E. None of the answers provided are correct. Account Description Common stock 525 530 535 540 Retained earnings Dividends Equipment Rental Expense Insurance Expense Interest expense Miscellaneous Expense Supplies Expense Utilities expense Wages expense Debit 1,260 Credit 1,260 Debit Credit 1,200 1,200 Debit Credit 1,080 1,080 Debit Credit 1,400 Balance $30,000 20,000 20,000 215,000 40,000 0 9,000 7,000 0 1.400 ? 0 11,000 105,000Step by Step Solution
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