Question

Workshop 4 Problems Student Q Search Shoot + Doo Home Insert Page Layout Formulas Data Xcut Calibri (Body) 12. AA Paste Format B IV . A A G11 XVfx Review = = View . - Auto.m . A Wrap Text . Copy General $ % 3 M erge & Carter ) 0 Check Cell Conditional Format Formatting as Table Insert Delete Format Clear Filter M N Points: 18 items O P Q 2 pts. each - 36 points 2 M B C D 1 4.6 Recording transactions in the Accounting Equation including purchase of asset and recording depreciation. 2 Directions Complete the accounting equation and questions below with the information provided 6 7 4 Background information: 5 1 The company started when it acquired $85.000 cash issuing comman stock 2 Purchased a new industrial oven that cost $35.000 cash 3 Larned $75,000 in cash revenue R 4 $10000 cash for salaries Expense 9 5 Adjustment for use of industrial oven. Purchased on January 2 2018 with a useful life of 4 years and salvage value of $4,000 10 Straight-ire Depreciation was used of the entry on December 31,2018 12 Cempete the nine equation Geoly Company Accounting Couation Balance Sheet Deration Common Groc Retained Earnings 16 Event 17 18 1 19 2 20 3 214 22 5 23 Total Cash $ 55,000 125.000 75.000 130,000 S 05,000 + 25 What amount of depreciation expense should be reported on the 2018 income statement? 27 c) What amount of acumulated depreciation would be reported on the 2019 Year End Balance Sheet? 20 Haful Rev 31 What are the Man Types of Deation Methods? 83 Capital Ast Dennis Stahtline Problem 4.1 Problem 4.2 Problem 4.3 Problem 4.4 Problem 4.5 Problem 4.6 Ready E M - + 100%

Answer 1

Balance Sheet											Income Statement
	Assets				Accumulated		Sharholder Equity
	Cash		Equipment		Depereciation		Common Stock		Retained Earnnings		Revenue	-	Expense	=	Net Income
1	55000						5000
2	-35000		35000
3	75000								75000		75000				75000
4	-30000								-30000				30000		-30000
5					7750				-7750				7750		-7750
	65000	0	35000	0	7750	0	5000	0	37250	0	75000	0	37750	0	37250
b	7750
c	15500
Depreciation Workings (Cost -Salvage Value) No years of usage =(35000-4000)/4 =7750
Accumulated depreciayion for december 2019 will $7750 * 2 year depreciation =1550