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Mean Beans, a local coffee shop, has the following assets on January 1 , 2 0 2 3 . Mean Beans prepares annual financial statements
Mean Beans, a local coffee shop, has the following assets on January Mean Beans prepares annual financial statements and has a December yearend. The company's depreciation policy is to use the straightline method to depreciate its assets. a On January purchase equipment costing $ with an estimated life of five years. Mean Beans will scrap the equipment after five years for $ b On July purchase furniture tables and chairs costing $ with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $ after ten years. c On January Mean Beans had purchased a car costing $ with an estimated life of eight years. Mean Beans estimates that it can sell the car for $ after eight years. Required: a For each transaction, calculate the current year's annual depreciation expense. b For each transaction, record the adjusting entry on December Journal entry worksheet Record annual depreciation on equipment. Note: Enter debits before credits. For the car, determine the accumulated depreciation as of December Accumulated depreciation For the car, determine the book value as of December
Mean Beans, a local coffee shop, has the following assets on January Mean Beans prepares annual financial statements and
has a December yearend. The company's depreciation policy is to use the straightline method to depreciate its assets.
a On January purchase equipment costing $ with an estimated life of five years. Mean Beans will scrap the equipment
after five years for $
b On July purchase furniture tables and chairs costing $ with an estimated life of ten years. Mean Beans estimates
that it can sell the furniture for $ after ten years.
c On January Mean Beans had purchased a car costing $ with an estimated life of eight years. Mean Beans estimates
that it can sell the car for $ after eight years.
Required:
a For each transaction, calculate the current year's annual depreciation expense.
b For each transaction, record the adjusting entry on December
Journal entry worksheet
Record annual depreciation on equipment.
Note: Enter debits before credits.
For the car, determine the accumulated depreciation as of December
Accumulated depreciation
For the car, determine the book value as of December
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