FinanciPAccounting-Acctg - (32) Instructor-Turck (7)SupEx(AJES).docx: NAME Part B (continued) use your own paper 10. Zombie depreciates its Property, Plant & Equipment(P,P&E) assets on a straight-line basis. The unadjusted balance in Accumulated Depreciation is $13,625(i.e., the balance as of 1/1/2019). Details for the P,P&E assets appears in the table below. Note: In the year of acquisition Zombie depreciates new long-term asset to the nearest whole month DATE OF USEFUL LIFE SALVAGE ACQUISITION ITEM (in years) VALUE COST 4/1/2013 Building 30 $5,000 $50,000 12/10/2016 Machinery 24,000 6/3/2019 Computer Sys. 4 10/2/2019 Telephone Sys. 8 a. Determine the 2019 depreciation expense for each item. Show your calculations! b. Prepare one Adjusting Journal Entry for the total you calculated in part a. c. Determine the Net Book Value and Balance Sheet presentation of Zombie's long-term assets as of December 31, 2019? 10 -0- 3,000 1,000 33,000 41.000 Examples: For a long-term asset placed in service on February 10, include February and depreciate 11 months in the first year. If the asset is placed in service on February 18, then exclude February and depreciate over the remaining 10 months in the first year. 7 324 AMJIA SONID ||3|F | MIAMIJA SIO 1927 (33 Financial Accounting-Acctg_- Instructor-Turck (7)SupEx(AJES).docx: NAME use your own paper Part B (continued) 11. Zombie started 2019 with $2,000 worth of supplies in the storeroom, the 1/1/2019 balance in the Supplies account was properly at $2,000. During the year, $6,500 in supplies were purchased and debited to the Supplies account. On 12/31/2019, an inventory counting of the storeroom reveals supplies valued at a cost of $3,250 remain on hand at year end. a. Reconstruct a journal entry that represents the $6,500 worth of supplies purchases. (ignore date) Setting up T-accounts can prove helpful for working out the correct AJE in b. below. Supplies Supplies Expense Beg. Bal Beg. Bal supply invoices 11a) Unadi. Bal. Unadj. Bal. +AJE AJE Adj.Bal. Adj Bal b. Prepare the necessary AJE dated 12/31/2019. c. How much will Zombie report for Supplies on the 12/31/2019 Balance Sheet? d. How much will Zombie report for Supplies Expense on the 2019 Income Statement? 12. Suppose instead of (11) above: Zombie started 2019 with $2,000 worth of supplies in the storeroom, the 1/1/2019 balance in the Supplies account was properly at $2,000. During the year, $6,500 in supplies were purchased and debited to Supplies Expense. On 12/31/2019, counting supplies in the storeroom reveals that $3,250 at cost value remain on hand at year end. (read this carefully) a Reconstruct a journal entry that represents the $6,500 worth of supplies purchases. (ignore date) Setting up 7-accounts can prove helpful for working out the correct AJE in b. below. Supplies Supplies Expense Beg, Bal. supply invoices 12a) Unadj. Bal. Unadj. Bal. Adj.Bal. Adj.Bal. b. Prepare the necessary AJE dated 12/31/2019. c. After posting the AJE, what will be the reported balance in the Supplies account on the B/S? d. After posting the AJE, what will be the reported balance in Supplies Expense account on I/S? 8