Question
Recording Asset Purchase and Depreciation AtoZ Co. purchased equipment on June 1, 2020, for $75,000. The company plans to depreciate the asset evenly over its
Recording Asset Purchase and Depreciation
AtoZ Co. purchased equipment on June 1, 2020, for $75,000. The company plans to depreciate the asset evenly over its useful life of 8 years.
a. Record the entry for the purchase on June 1, 2020.
b. Record the required adjusting entry on December 31, 2020.
Note: Round your answers to the nearest dollar. For example, enter 5 for 5.49 and enter 6 for 5.50.
| General Journal | |||
|---|---|---|---|
| Ref. | Account Name | Dr. | Cr. |
| a. | CashAccounts ReceivableSuppliesEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseLegal ExpenseSalaries Expense
|
|
|
| CashAccounts ReceivableSuppliesEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseLegal ExpenseSalaries Expense
|
|
| |
| b. | CashAccounts ReceivableSuppliesEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseLegal ExpenseSalaries Expense
|
|
|
| CashAccounts ReceivableSuppliesEquipmentAccumulated DepreciationAccounts PayableAccrued Legal Fee ExpenseDeferred RevenueDividends PayableNote PayableCommon StockService RevenueDepreciation ExpenseLegal ExpenseSalaries Expense
|
| ||
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Sound Investing, Chapter 23 - Internal Control
Authors: Kate Mooney
1st Edition
0071719458, 9780071719452
