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On March 1, 2021 Smith Company purchased $10,500 of office supplies. On that date Smith recorded the supplies purchase transaction as follows: 1 The entry

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On March 1, 2021 Smith Company purchased $10,500 of office supplies. On that date Smith recorded the supplies purchase transaction as follows: 1 The entry above is the only entry Smith has made related to this item. The balance was zero in the Supplies account prior to the above entry. On March 31, 2021 Smith counted the office supplies and determined there were $9,300 remaining. Dr. Supplies Expense (10,5009,300) Cr. Supplies (10,5009,300) Smith's employees are paid in cash each Friday for that week's work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26. The employees worked on Monday March 29", Tuesday March 30, and Wednesday March 31. The employees earned a total of $1,000 for these last three days of March. Dr. Wage Expense 1,000 Cr. Wage Payable 1,000 On March 1, 2021 Smith Company purchased a new piece of equipment for $210,000 cash. On March I Smith recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Smith estimates that the equipment will last 5 years. Smith also estimates that at the end of 5 years the equipment will have no future value and will be scrapped. Smith uses the straight-line depreciation method. On March 1, 2021 Smith Company purchased a new piece of equipment for $210,000 cash. On March 1 Smith recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Smith estimates that the equipment will last 5 years. Smith also estimates that at the end of 5 years the equipment will have no future value and will be scrapped. Smith uses the straight-line depreciation method. Dr. Depreciation Expense (210,000/[5*12]) Cr. Accum Deprecation (210,000/[512]) 1. What is the Net Income? (Total Revenue- Total Expense) 2. What is the total Asset? Cash + Acc Rec+Inventory+Supplies+Equipment-Accum Deprecation 3. What is the total Equity? Common Stock+Retained Earnings + Net Income On March 1, 2021 Smith Company purchased $10,500 of office supplies. On that date Smith recorded the supplies purchase transaction as follows: 1 The entry above is the only entry Smith has made related to this item. The balance was zero in the Supplies account prior to the above entry. On March 31, 2021 Smith counted the office supplies and determined there were $9,300 remaining. Dr. Supplies Expense (10,5009,300) Cr. Supplies (10,5009,300) Smith's employees are paid in cash each Friday for that week's work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26. The employees worked on Monday March 29", Tuesday March 30, and Wednesday March 31. The employees earned a total of $1,000 for these last three days of March. Dr. Wage Expense 1,000 Cr. Wage Payable 1,000 On March 1, 2021 Smith Company purchased a new piece of equipment for $210,000 cash. On March I Smith recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Smith estimates that the equipment will last 5 years. Smith also estimates that at the end of 5 years the equipment will have no future value and will be scrapped. Smith uses the straight-line depreciation method. On March 1, 2021 Smith Company purchased a new piece of equipment for $210,000 cash. On March 1 Smith recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Smith estimates that the equipment will last 5 years. Smith also estimates that at the end of 5 years the equipment will have no future value and will be scrapped. Smith uses the straight-line depreciation method. Dr. Depreciation Expense (210,000/[5*12]) Cr. Accum Deprecation (210,000/[512]) 1. What is the Net Income? (Total Revenue- Total Expense) 2. What is the total Asset? Cash + Acc Rec+Inventory+Supplies+Equipment-Accum Deprecation 3. What is the total Equity? Common Stock+Retained Earnings + Net Income

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