The Accounting Cycle

Begin with the following account balances for University Street Parking Garage (assume all accounts have normal balances) at December 31, 2013:

Accounts payable 16,700

Accounts receivable 39,200

Accumulated depreciation (equipment) 36,800

Cash 6,700

Common stock (20000 shares) 100,000

Depreciation expense (equipment) 12,300

Dividends 6,300

Equipment 269,500

Income taxes expense 2,700

Income taxes payable 1,100

Interest expense 16,500

Interest payable 0

Interest revenue 4,100

Inventory 4,900

Investments 35,000

Notes payable (due May2, 2019) 160,000

Prepaid rent (4 months) 36,400

Rent expense 94,400

Retained earnings, 12/31/2012 43,000

Service Revenue parking 224,600

Supplies expense 36,900

Wages expense 233,600

Wages payable 0

Required:

c. University Street Parking should have total depreciation expense on equipment for 2013 of $14,300.

d. The note payable of $160,000 has an interest rate of 6.75%. University Street Parking has paid interest through October 31, 2013.

c. Depreciation expense ?

Accumulated Depreciation ?

(record depreciation)

d. Interest expense ?

Interest Payable ?

(record interest)