Answer to Question #210513 in Accounting for Lori Johnson

Question

Post adjusting entries, using the following information:

1. Ryce paid cash for the following utility bills for the month: Light Company $13,000. The actual light bill received from Light Company is $10,000.
2. Ryce stated business with a G Wagon valued at $1,200,000. Depreciation for the G Wagon has not been taken into account for the month. The business uses the reducing balance method to depreciate motor vehicles at a rate of 12 percent (12%) per annum.
3. Ryce purchased store furniture from Royal Cabinets Limited using a cheque amounting to $120,000. Also, Ryce paid Telesales Electronics $15,000 with a cheque to set up her point-of-sale machine at the store. The furniture and point-of-sale machine in the business are to be depreciated using the straight-line method at a rate of 8%. Depreciation for furniture and point-of-sale the machine has not been taken into account.

Answer 1

1.Debit settlements with suppliers credit cash register - 13 000

Debit main production credit settlements with suppliers - 10000

Debit cash register credit settlements with suppliers - 3000

2.It is necessary to add additional depreciation:

Debit main production of Credit depreciation - 12 000

$\frac{1 200 00\times0.12}{12}=12000$

3.t is necessary to add additional depreciation:

Debit main production of Credit depreciation - 960

Debit main production of Credit depreciation - 100

$\frac{15000\times0.08}{12}=100$

$\frac{120000\times0.08}{12}=960$