Directions: Complete the following exercises.

1.On January 1, Simms Delivery purchased a truck for $60,000. The truck has an estimated useful life of 5 years and a $10,000 expected trade-in value. Simms uses the straight-line method.

a.Prepare the adjusting entry for depreciation on December 31 of the year. (Show all calculations below the entry.)

Date Description Post Ref Debit Credit

	Adjusting Entries

b.Compute the book value at the end of the second year of the trucks useful life. (Show all calculations in your answer.)

Directions: Complete the worksheet on the next page.

Dewey Legal Services

Work Sheet

For the Month Ended August 31, 20--

Account Title	Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	3,500
Accounts Receivable	800
Supplies	200
Prepaid Insurance	1,000
Computer Equipment	6,000
Accum. Depreciation Computer Equipment		1,500
Office Furniture	9,000
Accum. Depreciation Office Furniture		2,000
Accounts Payable		1,300
Wages Payable		350
H. Dewey, Capital		7,820
H. Dewey, Drawing	400
Legal Service Fees		10,100
Wages Expense	450
Advertising Expense	110
Rent Expense	575
Supplies Expense	375
Telephone Expense	125
Insurance Expense	85
Deprec. Exp. Computer Equipment	250
Deprec. Exp. Office Furniture	160
Miscellaneous Exp.	40
	23,070	23,070
Net Income (Loss)

Chapter 7

Directions: On April 1, a petty cash fund was established for $150. The following vouchers were issued during the month. Prepare the journal entries to (a) establish the petty cash fund on April 1 and (b) replenish the petty cash fund on April 30.

Date	Voucher No.	Purpose	Amount
6	4-1	Office supplies	12.00
8	4-2	Taxi fare for customer (travel and entertainment)	27.50
12	4-3	Postage due	4.50
17	4-4	Donation (Red Cross)	30.00
24	4-5	Office supplies	21.00
30	4-6	Owner withdrawal for personal use	40.00

GENERAL JOURNAL

DATE		DESCRIPTION	POST REF	DEBIT	CREDIT

Chapter 8

Section D

Directions: Tobis Tax & Accounting Services has four employees who are paid on a weekly basis. Each is paid time and one-half for working more than 40 hours in one week. The payroll data for the week ended October 31 is shown below. Use this information to complete the payroll register on the next page. Round to the nearest two decimal places, as needed. Total and verify the columns. (30 points total)

Name	Number of Allowances	Marital Status	Total Hours	Pay Rate	Cumulative Earnings	Federal Income Tax
J. Jay	1	S	42	16.00	27,520.00	79.00
K. Meier	0	S	39	15.00	26,250.00	73.00
L. Thayer	2	M	48	20.00	35,000.00	100.00
M. Ulmer	4	M	40	1,000 per week	43,000.00	120.00

The cumulative earnings shown above are for the year through last week. Social Security tax is withheld at 6.2% and Medicare tax at 1.45%. Each employee who is married has $45 withheld for health insurance, and each employee who is single has $18 withheld. Ulmer has $30 deducted each pay period for U.S. Savings Bonds. The unemployment compensation earnings for each of the employees is $0.00 for this pay period.

Number the checks beginning with 1001.

PAYROLL REGISTER
Name	Number of Allowances	Marital Status	Earnings				Taxable Earnings
			Regular	Overtime	Total	Cumulative Total	Unemployment Compensation	Social Security
For the Week Ended 10/31/--
FIT	Social Security	Medicare	Health Insurance	U.S. Bonds	Total Deductions	Net Pay	Check Number
Please complete all questions in Excel form.