17. When preparing a bankreconciliation, deposits in transit are added to the ba

Question

17. When preparing a bankreconciliation, deposits in transit are added to the balance per bank statement. subtracted from the balance per bank statement. addedto the balance per companyrecords. subtracted from the balance per company records. C. d. 18. CC owns a $600,000 building that waspurchased fouryears ago. The firm was recording depreciatiorn under straight line method, estimating a 20-year service life and a $40,000 residual value. At the beginning ofthis, the 5thyear, CC detemined that the residual value should be $60,000. As aresult ofthis revision, depreciation in the curent yearwould be $24,250 $26,750 $27,000 $30,500 C. d.

Explanation / Answer

17. a. Added to the balance per bank statement

18. Answer 26,750 Depreciation in 1st year (600000-40000)/20                       28,000 Total 4 year Depreciation(28000*4)                    112,000 Asset Value in 5th year(600000-112000)                    488,000 New residual Value                       60,000 So New Depreciation(488000-60000)/16                       26,750

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