Bob's Bakery purchased an industrial oven for $22,000 with a residual value of $6,000 and a life
Question:
Bob's Bakery purchased an industrial oven for $22,000 with a residual value of $6,000 and a life expectancy of 8 years. Using straight-line depreciation, the amount of the depreciation adjustment for the first year would be
A) $1,000.
B) $8,000.
C) $2,000.
D) $4,000.
2. Albert Windows Company showed supplies available during the year of $1,700. A count of the supplies on hand as of October 31 is $600. The adjusting entry for Store Supplies expense would include
A) a debit to Store Supplies Expense for $600.
B) a credit to Store Supplies Expense for $600.
C) a debit to Store Supplies for $1,100.
D) a debit to Store Supplies Expense for $1,100.
3. On March 1, Rosetti Company paid in advance $7,000 for seven months' rent. The March 31 adjusting entry for rent expense should include
A) debit Rent Expense, $2,500.
B) credit Prepaid Rent, $3,500.
C) debit Rent Expense, $2,000.
D) debit Rent Expense, $1,000.
4. If the balance of supplies asset account at the end of the period was $800 and you counted $100 on hand, the amount for the adjustment for Supplies expense would be
A) $700 credit.
B) $700 debit.
C) $100 credit.
D) $100 debit.
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy