Question 1:

Equipment with a cost of $149,624 has an estimated residual value of $7,841 and an estimated life of 7 years or 12,979 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,736 hours?

a. $20,254.71

b. $7.00

c. $37.95

d. $40,812.18

 

 

Question 2 

On November 10, JumpStart Co. provides $1,910 in services to clients. At the time of service, the clients paid $500 in cash and put the balance on account.Required:

a.	Journalize this event.*
b.	On November 20, JumpStart Co. clients paid an additional $330 on their accounts due. Journalize this event.*
c.	Calculate the accounts receivable balance on November 30.
	*Refer to the Chart of Accounts for exact wording of account titles.

 

 

 

 

a. On November 10, JumpStart Co. provides $1,910 in services to clients. At the time of service, the clients paid $500 in cash and put the balance on account. Journalize this event. Refer to the Chart of Accounts for exact wording of account titles.

 

PAGE 1

JOURNAL

                                                                                                                                            ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3

 

b. On November 20, JumpStart Co. clients paid an additional $330 on their accounts due. Journalize this event. Refer to the Chart of Accounts for exact wording of account titles.

 

PAGE 1

JOURNAL

                                                                                                                      ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

 

 

c. Calculate the accounts receivable balance on November 30.

Accounts receivable balance

 

 

 

112131415161718 212223 313233 CHART OF ACCOUNTSJumpsStart Co. General Ledger ASSETS REVENUECash 41 Fees Earned Accounts Receivable Office Supplies EXPENSES Prepaid Insurance 51 Wages Expense Land 53 Rent Expense Office Equipment 54 Utilities ExpenseBuilding 55 Maintenance ExpenseTruck 59 Miscellaneous ExpenseLIABILITIES Accounts PayableUnearned Revenue Notes Payable EQUITYCommon StockRetained Earnings Dividends