The first 6 months of the year have concluded for Smith Computer Center, and Thad wants to
Question:
The first 6 months of the year have concluded for Smith Computer Center, and Thad wants to make the necessary adjustments to his accounts to prepare accurate financial statements.
Assignment
To prepare these adjustments, use the trial balance in Figure 11.17 and the following inventory that Thad took at the end of March:
Supplies
15 dozen 1/4-inch screws at a cost of $15 a dozen
8 dozen 1/2-inch screws at a cost of $10 a dozen
4 feet of coaxial cable at a cost of $8 per foot
Figure 11.17:
Merchandise Inventory
A physical inventory taken on March 31 indicated that merchandise inventory was valued at $400.
Depreciation of Computer Equipment
Computer depreciates at $50 a month; purchased July 5.
Computer workstations depreciate at $35 per month; purchased September 17.
Shop benches depreciate at $30 per month; purchased November 5.
Depreciation of Office Equipment
Office equipment depreciates at $55 per month; purchased July 17.
Fax machine depreciates at $15 per month; purchased November 20.
Expiration of Prepaid Rent
Six months’ worth of rent at a rental rate of $500 per month has expired. The following accounts have been added to the chart of accounts: Merchandise Inventory 1050, and Income Summary 3020.
Remember: If any long-term asset is purchased in the first 15 days of the month, Thad will charge depreciation for the full month. If an asset is purchased later than the 15th, he will not charge depreciation in the month it was purchased.
Complete the 10-column worksheet for the 6 months ended March 31, 201X.
Step by Step Answer:
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater