Question

1) At the end of its first year, the trial balance of Nygaard Company shows Equipment $30,200 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,700.

Prepare the adjusting entry for depreciation at December 31.

**THE RED AREA IS WHERE I NEED HELP**

Debit Date Account Titles and Explanation Credit Dec. 31 [Depreciation Expense 4,700 Accumulated Depreciati 4,700 Post the adjustments to T-accounts. Depreciation Expense 12/31 12/31 Accumulated Depreciation- Equipment 12/31 12/31

2) Ritter Advertising Company’s trial balance at December 31 shows Supplies $7,500 and Supplies Expense $0. On December 31, there are $2,900 of supplies on hand.

Prepare the adjusting entry at December 31, and using T-accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

Answer 1

Ans:

Date	Account titles and explanation	Debit	Credit
Dec.31	Depreciation Expense	$4,700
	Accumulated Depreciation-Equipment		$4,700

Depreciation Expense

Debit		Credit
Particulars	Amount	Particulars	Amount
Accumulated Depreciation-Equipment	$4,700

Accumulated Depreciation-Equipment

Debit		Credit
Particulars	Amount	Particulars	Amount
		Depreciation Expense	$4,700

Balance sheet

Equipment	$30,200
Less: Accumulated Depreciation-Equipment	$4,700	$25,500

2.

Adjusting Entry	Debit	Credit
Supplies Expenses	4600
Supplies (7500-2900)		4600
(Being Supplied Adjusted)

Supplies
		Supplies Expenses	4600
Balance	7500
Ending balance	2900
Supplies Expenses
Supplies	4600
Balance	4600