Chart of Accounts CHART OF ACCOUNTS Instructions General Ledger Equipment acquired on January 6 at a cost of $405,115, has an estimated useful life of 16 years and an estimated residual value of $61,595. ASSETS REVENUE Required: 110 Cash 410 Sales a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 620 Gain on Sale of Delivery Truck 114 Interest Receivable 621 Gain on Sale of Equipment 115 Notes Receivable b. What was the book value of the equipment on January 1 of Year 3? C. Assuming that the equipment was sold on January 3 of Year 4 for $325,545, journalize the entry to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. d. Assuming that the equipment had been sold on January 3 of Year 4 for $353,980 instead of $325,545, journalize the entry to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount entered 116 Merchandise Inventory EXPENSES 117 Supplies 510 Cost of Merchandise Sold 119 Prepaid Insurance 520 Salaries Expense 120 Land 521 Advertising Expense 522 Depreciation Expense-Delivery Truck 123 Delivery Truck 124 Accumulated Depreciation-Delivery Truck 523 Delivery Expense 125 Equipment 126 Accumulated Depreciation-Equipment 130 Mineral Rights 524 Repairs and Maintenance Expense 529 Selling Expenses 531 Rent Expense 131 Accumulated Depletion 532 Depreciation Expense-Equipment 132 Goodwill 533 Depletion Expense Journal x C. Assuming that the equipment was sold on January 3 of Year 4 for $325,545, journalize the entry to record the sale. Refer to the chart of accounts for the exact wording the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals wil automatical indent a credit entry when a credit amount is entered. First Questions a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? PAGE 1 JOURNAL ACCOUNTING EQUATION Year 1 depreciation expense DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Year 2 depreciation expense $ 1 Year 3 depreciation expense $ 2 b. What was the book value of the equipment on January 1 of Year 3? 3 $ d. Assuming that the equipment had been sold on January 3 of Year 4 for $353,980 instead of $325,545, journalize the entry to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY d. Assuming that the equipment had been sold on January 3 of Year 4 for $353,980 instead of $325,545, journalize the entry to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
