1. Answer the following questions (Show your work). a. Equipment is purchased fo
ID: 2346627 • Letter: 1
Question
1. Answer the following questions (Show your work).a. Equipment is purchased for $48,000, to be used for eight years. Assuming zero value, at the end of eight years, what is the equipment’s carrying value after two years and three months.
b. Prepaid Insurance has an $800 balance prior to adjustment. By year end, one-fourth has expired. What will be the balance in Prepaid Insurance after the adjusting entry has been made?
c. A company purchased $210 in supplies during the year, recorded $120 in Supplies Expense, and ended with $350 of supplies. What was the beginning balance of Supplies?
d. Revenues of $60,000 was earned, but only $45,000 was collected, Expenses of $36,000 were incurred, but only $30,000 was paid. What is reported net income?
e. Wages of $2,000 are paid every Friday for a five-day workweek. If year end falls on a Tuesday, the adjusting entry for wages would be recorded at what amount?
f. Supplies Expense of $3,600 was recorded for a given year. Assuming that $2,400 in supplies were purchased during the year and that $640 in supplies remained at year end, what was the cost of supplies at the beginning of the year
Explanation / Answer
a. 48000 - 6000 - 6000 - 1500 = 34,500 b. 800 - 200 = 600 c. 120 + 350 - 210 = 260 d. 60,000 - 36,000 = 24,000 e. 2000 * 2/5 = 800 f. 3600 + 640 - 2400 = 1840
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