How would I go about making the following adjustments to the unadjusted trail ba

Question

How would I go about making the following adjustments to the unadjusted trail balance:It is estimated that 20% of the balance of the Advertising Expense account is for advertising that will appear in various media early in the next quarter, Granite Bay Jet Ski, Inc., has three trucks. The new truck acquired on June 21 will not be depreciated this quarter. An old truck used only for short distance heavy hauling is fully depreciated. The third truck was acquired at a cost of $25,500.00, has a salvage value of $7,500.00, is depreciated on a miles driven basis (units of production depreciation), and has an estimated service life of 120,000 miles. The truck was driven 2,240 miles during the quarter, The $10,000.00 balance in the Long-Term Note Payable account is the balance owing from a $100,000.00, 6% note that requires quarterly payments of $5,000.00 plus accrued interest on the unpaid balance. The $5,000.00 payments, plus accrued interest from the previous quarter, are made the first day of January, April, July, and October of each year, Accrue the quarterly interest on the $10,000.00, 6%, long-term notes payable, The balance sheet (computer aging) method is used to estimate the balance of the Allowance for Doubtful Accounts account for the end of each quarter. The program has analyzed all accounts receivable and calculated the estimated balance of the account to be $2,190.50.

Explanation / Answer

Under the units of generation system for devaluation, you DO need to subtract rescue worth to decide deterioration per unit. For this situation, you would get 25,500 - 7,500 = 18,000. Partitioning by 120,000 miles = .15 for each mile. Increasing by 2,240 miles, you get 336.00 of deterioration cost. You are utilizing the right records.

The interest computation for 52 days would be 10,000 x .085 x 52 = 122.78. 52 days would be August 13 - is that the date your are gathering enthusiasm through? In the event that you are attempting to register the enthusiasm due for the whole 60 days, you would have 10,000 x .085 x 60/360 = 141.67. The passage would be charge Interest Receivable and credit Interest Income.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.