Question

- 46 Project #8: Depreciation pre Credits Debits 52,898 10,250 SSSSSSSSSSSSWAUMU 1,260 20,390 650 320 30,550 12,250 62,128 275 12,000 Fido's Food Mart Adjusted Trial Balance December 31, 20XX Account Title Cash Accounts Receivable Less: Allowance for Doubtful Accounts Inventory Supplies Prepaid Insurance Equipment Vehicle Less: Accumulated Depreciation - Equipment and Vehicle Accounts Payable Unearned Revenue (Gift Cards) Bonds Payable (mature 12/31/XX) Common Stock (200 shares @ $210/share, par $210) Retained Earnings Sales Revenue Less: Sales Discount Cost of Goods Sold Operating Expenses Bad Debt Expense Depreciation Expense Insurance Expense Rent Expense Supplies Expense Wages Expense Totals 42,000 134,725 40 64,330 34,840 3,260 160 5,750 1,200 15,500 252,388 252,388

Answer 1

3	Depreciation table for vehicle
	Depreciation per annum = (12250-850)/5 = 2280
	Year	Written-down value	Depreciation	Accumulated depreciation	Closing Balance
	1	12250	380	380	11870
	2	11870	2280	2660	9590
	3	9590	2280	4940	7310
	4	7310	2280	7220	5030
	5	5030	2280	9500	2750
2	Accounting equation (Year 1)
a		Assets =	Liabilities +	Equity
	Increase in depreciation expense			-380
	Decrease in vehicle value (due to accumulated depreciation)	-380
		-380		-380
b	Date	Particulars	Debit ($)	Credit ($)
	Year end	Depreciation expense	-380
		Accumulated depreciation - Vehicle		-380
c	T-Accounts
	Depreciation expense A/c
	Beginning	0	To Income statement	-380
	Year end	-380
		-380		-380
	Accumulated Depreciation A/c
	Beginning	0	Year end	-380
	Balance c/d	-380
		-380		-380

3	Depreciation table for equipment
	Depreciation per annum = (30550-1150)/7 = 4200
	Year	Written-down value	Depreciation	Accumulated depreciation	Closing Balance
	1	30550	1400	1400	29150
	2	29150	2280	3680	26870
	3	26870	2280	5960	24590
	4	24590	2280	8240	22310
	5	22310	2280	10520	20030
4	Accounting equation (Year 1)
a		Assets =	Liabilities +	Equity
	Increase in depreciation expense			-1400
	Decrease in vehicle value (due to accumulated depreciation)	-1400
		-1400		-1400
b	Date	Particulars	Debit ($)	Credit ($)
	Year end	Depreciation expense	-1400
		Accumulated depreciation - Vehicle		-1400
c	T-Accounts
	Depreciation expense A/c
	Beginning	0	To Income statement	-1400
	Year end	-1400
		-1400		-1400
	Accumulated Depreciation A/c
	Beginning	0	Year end	-1400
	Balance c/d	-1400
		-1400		-1400

5	Changes in Adjusted trial balance:
	Account title	Debit	Credit
	Accumulated depreciation - vehicles and equipment		1780
	Depreciation expense	1780
	Totals will increase to 252388+1780 = 254168