At the end of its first year, the trial balance of Shah Ltd shows Equipment $25 000
Question:
At the end of its first year, the trial balance of Shah Ltd shows Equipment $25 000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3000. Prepare the adjusting entry for depreciation at 30 June, post the adjustments to T accounts, and indicate the statement of financial position presentation of the equipment at 30 June.
Step by Step Answer:
The adjusting entry for depreciation at 30 June would be Depreciation Expense 3000 Accumulated Dep...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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