On August 1, Walnut Inc. purchased equipment with a useful life of 10 years. Walnut purchased...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On August 1", Walnut Inc. purchased equipment with a useful life of 10 years. Walnut purchased the equipment for $50,000 and reasonably believes they will be able to sell it for $5,000 at the end of its life. Walnut uses straight-line depreciation. What is the adjusting journal entry Walnut Inc. will make on December 31 to record depreciation? Dr. Depreciation expense 1,875; Cr. Accumulated depreciation 1.875 O Dr. Accumulated depreciation 1,875: Cr. Depreciation expense 1,875 Dr. Depreciation expense 4,500; Cr. Accumulated deprectation 4,500 Dr. Accumulated depreciation 4,500; Cr. Depreciation expense 4,500 On August 1", Walnut Inc. purchased equipment with a useful life of 10 years. Walnut purchased the equipment for $50,000 and reasonably believes they will be able to sell it for $5,000 at the end of its life. Walnut uses straight-line depreciation. What is the adjusting journal entry Walnut Inc. will make on December 31 to record depreciation? Dr. Depreciation expense 1,875; Cr. Accumulated depreciation 1.875 O Dr. Accumulated depreciation 1,875: Cr. Depreciation expense 1,875 Dr. Depreciation expense 4,500; Cr. Accumulated deprectation 4,500 Dr. Accumulated depreciation 4,500; Cr. Depreciation expense 4,500
Expert Answer:
Answer rating: 100% (QA)
Depreciation 50000500010512 1875 Journal entry Date Acco... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Equipment costing $90,000 with a useful life of 10 years and a residual value of $6,000 has been depreciated for 6 years by the straight-line method. Assume a fiscal year ending December 31. (a) What...
-
A machine with a useful life of 10 years and a residual value of $4,000 was purchased for $30,000. What is annual depreciation under the straight-line method?
-
Purchase a factory with a useful life of 10 years today for $335,000. In addition, the company can rent some additional space for an annual rent of $7,000. Assume Perlita Renata would receive the...
-
Equation 11.14 can be expressed in "coordinate-free" form by writing P0 cos = P0 r. Do so, and likewise for Eqs. 11.17, 11.18. 11.19, and 11.21.
-
These data are the ages of 118 known offenders who committed an auto theft last year in Garden City, Michigan: a. Find the mean. b. Find the median. c. Find the mode. d. Find Q1 and Q3. e. Find P10...
-
Explain the role of investment bankers.
-
Suppose that all the assumptions of the model of Kyle [1147] as presented in Sect. 10.2 are satisfied, apart from the fact that informed agents do not observe perfectly the liquidation value...
-
In 2016, Christian wants to transfer as much as possible to his four adult married children (including spouses) and eight minor grandchildren without using any unified transfer tax credit. a. How...
-
Under HIPAA, healthcare providers, health assurance) plans, and healthcare clearinghouses must transmit PHI electronically. What ane they called?
-
Tankmaster Manufacturing Company is a large manufacturer of domestic oil tanks. Since it came into existence in 1980, the company has enjoyed steady growth in both sales and profits. Davina...
-
Show how to use 74LS138s to form a 1-of-16 decoder.
-
What are the consequences for failure to develop a consistent framework for defining budget choices in performance budget management?
-
Identify the theory that you believe to be a major cause of inequality and crime in America and why? Support your position with evidence.
-
Assume Costco has a beginning balance in equity of $30,000 on September 1st. During September, the following transactions occur. Costco issues 1,000 new shares for $9 a share. Costco has net income...
-
Discuss what type of theory the conceptual frameDiscuss what steps were taken by the IASB jointly with the FASB and individually to develop the conceptual framework for financial reporting in global...
-
Alocal CPA is engaged by a private not-for-profit organization ot carry out eht annual audit on the financial statements at a negotiated price fo $12,000. However, upon completion of the work, the...
-
Blue Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they...
-
AB CORPORATION ISSUED THE FOLLOWING 850 COMMON STOCKS PAR VALUE P100 750 PARTICIPATING PREFERRED STOCKS PAR VALUE P100 AT 3% AB CORPORATION DECLARED P100,000.00 DIVIDEND IN 2022.
-
On June 1, 2014, Jill Bow and Aisha Amri formed a partnership, contributing $280,000 cash and $360,000 of equipment, respectively. Also, the partnership assumed responsibility for a $40,000 note...
-
George, Burton, and Dillman have been partners for three years. The partnership is being dissolved. George is leaving the firm, but Burton and Dillman plan to carry on the business. In the final...
-
Required Which of the three competing corporations is in the strongest relative position as indicated by their comparative statements of cashflows? (in thousands) Frasor SpereTavis Cash inflow...
-
You can think of a financial plan as a "financial road map to guide you through life." Develop a visual display that illustrates this concept and the five steps of the financial planning process. Try...
-
Summarize the five steps that make up the financial planning process.
-
Visit your campus career counseling office to learn about the services available to assist you with your career search and your job search. What career management services, if any, are available...
Study smarter with the SolutionInn App