question 3-3A

s u scel purchases of plant and eyup Date of Purchase Plant and Equipment Item Estimated Sales Value at End of Estimated Useful Life Estimated Useful Life Cost Useful Life $ -O- Machine A 5 years 3.400 a. Jan. 1 b. Apr. 1 c. Nov. 1 Machine B $102,000 61,000 30,500 4 years 2,900 2 years Machine C Required Prepare the annual adjusting entry at Decembe te the annual adjusting entry at December 31, 2020, Leroux's year-end, for each plant equipment item. Assume Leroux Steel uses the straight-line method ne Leroux Steel uses the straight-line method to depreciate its assets. Analysis Component: What is the purpose of recording depreciation? II dep What is the purpose of recording depreciation? If depreciation is not recorded, he would the income statement be affected? Problem 3-3A Preparing adjusting entries (monthly)-unearned revenues LO4 Helping Hand Outdoor Services pre-sells yard maintenance packages for the gardening season. During October, the company collects cash from clients for Christmas trees to be delivered in December. Snow removal services are also provided. Helping Hand prepares adjusting entries monthly. The following selectei accounts appear on the November 30, 2020, unadjusted trial balance: Account Debit Credit Unearned lawn services.................. Unearned garden services..... Unearned snow removal services...... Unearned Christmas tree sales..... $102,000 36,400 11,800 21,200 CHAPTER 3 Ag ora Account Den Uneamed uden service .... Uncanned snow removal Services Unced Christmas tree sales.---- i ed $102.000 36. 11.800 21200 Required Prepare the monthly adjusting journal entries at November 2020, using the following w a Information 86,000 of the Unearned Lawn Services account represents trents received from customers for the season. The remainder represents fall lawn services actually performed during November 2010 h. $31.950 of the Unearned Garden Services account had been earned by November 30, 2020 c. $9.200 of the Unearned Snow Removal Services account remained unearned at November 30, 2020 d. Helping Hand arranges with its customers to deliver trees from December 5 to December 20. As a result the Unearned Christmas Tree Sales account will be earned in total by December 20. Analysis Component: If the Unearned Lawn Services of $102,000 had been recorded as a revenue when received instead of as a liability, what would the effect have been on the November 30, 2020, financial state, ments assuming no adjustment was made on November 30, 2020? throuent cash entries-accrued expenses LO 21