The following accounts were taken from the trial balance of Cole Company as of December 31, 2013:
Question:
The following accounts were taken from the trial balance of Cole Company as of December 31, 2013:
Sales ......................................................... $70,000
Interest Revenue ............................................. 3,000
Equipment .................................................... 52,000
Accumulated Depreciation-Equipment .................. 8,000
Inventory ..................................................... 23,000
Advertising Expense ......................................... 1,500
Selling Expense .............................................. 7,500
Interest Expense ............................................. 2,000
Given the information below, make the necessary adjusting entries.
(a) The equipment has an estimated useful life of ten years and a salvage value of $4,000. Depreciation is calculated using the straight-line method.
(b) Of selling expense, $1,500 has been paid in advance.
(c) Interest of $800 has accrued on notes receivable.
(d) Of advertising expense, $440 was incorrectly debited to Selling Expense.
Salvage ValueSalvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Adjusting Entries a Depreciation Expense 4800 Accumulated D...View the full answer
