Question
K-Natty Co. ltd. Has the following financial statement at the beginning of 2019. K-Natty C0.ltd Statement of Financial Position At 31 st December 2018 Account
K-Natty Co. ltd. Has the following financial statement at the beginning of 2019.
K-Natty C0.ltd
Statement of Financial Position
At 31st December 2018
Account name | Account no. | Debit | Credit (Unit: USD) |
Cash | 101 | 920,500 | - |
Receivables | 102 | 574,500 | - |
Inventory | 103 | 774,003 | - |
Land | 104 | 600,000 | - |
Equipment | 105 | 134,000 | - |
Accumulated depreciation-Equipment | 106 |
| 13,400 |
Accounts payable | 201 |
| 500,000 |
Notes payable | 202 |
| 116,000 |
Common stock | 301 |
| 1,700,000 |
Retained Earnings | 303 |
| 673,603 |
Total |
| 3,003,003 | 3,003,003 |
*The equipment has a depreciation rate of 10% per year
Land Improvement 107: Machinery 108: Depreciation 501: Loss on disposal of asset 502:
During 2019, these following transactions took place:
Jan 1, purchased a land at a price of $190,000 by issuing $190,000 Note Payable which turns maturity on 31 December 2020, with interest rate 12%. The company spent the transfer fee on the amount of $10,000, by cash.
Feb 1, paying for the construction of a fence in the amount of $250,000 with 20% trade discount. The machine is expected to be used in the production department for 50,000 hours. After that, the residual value will be $50,000. The company depreciates the machine according to working hours.
Dec 31, beginning equipment was no longer used.
Dec 31, adjusting entries, the company spent 2,000 hours in the production department.
Required: Journal entries for the transaction during 2019.
T-Account
Trial balance at 31st December 2019.
I got almost everything for the journal entries except loss on disposal of asset, accumulated depreciation and equipment. I also need help to do the T-account and trial balance at 31st dec 2019
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