double entry. 1 On July 1, 2010 Cai hou sold an equipment for $4000(cash was received) and
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Question:
double entry.
1 On July 1, 2010 Cai hou sold an equipment for $4000(cash was received) and that sold equipment cost $25000 and has accumulated depreciation of $17000 at December31 of the prior calendar year-end. Annual depreciation on this equipment is $5000 computed using straight-line depreciation. (4marks) 2 On July 1, 2010 Cai hou purchased an equipment of $40000 by cash with an eight-year useful life and no salvage value. Cai hou used Straight-Line Method to calculate depreciation expense. (3marks) 3. On October 5, 2010 Cai hou purchased 10 units merchandise D of $13000 on credit from supplier Y, and paid $2000 freight charge to a carrier by cash (3marks) 4 On October 6,2010 Cai hou purchased 20 units merchandise D of $27000 on credit from supplier W (3marks) On October 10, 2010 Cai hou sold 8 units merchandise D for $21600 to customer E on credit with the terms of 2/10,n/30.Cai hou used First in First Out method to assign costs to inventory and to cost of goods sold (5marks) On October 11,2010 Cai hou sold 20 units merchandise D for $56000 to customer Q on credit with the terms of 2/10,n/30.Cai hou used First in First Out method to assign costs to inventory and to cost of goods sold (5marks) On October 12,2010 Cai hou received a $5600 debit memorandum for an allowance of defective merchandise D from customer Q (3marks) On October 15,2010, Cai hou collected cash of $49392 from customer Q and gave customer Q 2% discounts (5marks) ann (5marks) On October 16,2010, Cai hou made payment of $10000 by cash for next five year(2011-2015) rental fee (3marks) 10. On October 18,2010, Caihou collected $8000 from customer A to pay all his debts. Cai hou wrote off bad debt of $1000.Cai hou also agreed to accept a $6000, 90-day, 15% note from customer B to settle her $6500 past-due account. Cai hou also wrote off bad debt of $500. (5marks) 11. On November 2010, Cai hou purchased a patent costing $27000 with a useful life of 10 years by cash (3marks) 12. On November 2,2010, Cai hou made payment of $2000 for ordinary repair cost of the equipment by cash (3marks) 13. On December 31,2010, Cai hou accrued employee salary of $2200 and liabilities for this employee (ignoring all the relative tax) (3marks) 14 On December31,2010 Cai hou received customer PP advance payment of $20000 for merchandise D that has not been delivered to customer PP (4marks) 15. On December 31,2010 Caihou accrued depreciation expense of for equipment accrued amortization expense of for patent (8marks)
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