Question

Below is 3 different questions. Question in the textbook then what we have to work with. ACC 255 BE4-5, E4-9, E4-18 (a. only)

entry for BE4-5 At the end of its first year, the trial balance of Rayburn Company shows Equipment $22,000 and zero balances in Accumulated Depreciation Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,750. Prepare the annual adjusting entry for depreciation at December 31, post the adjustments to T-accounts, and indicate the balance sheet presentation of the equipment at December 31.

Answer 1

Exercise 4-5 :

Date	Account Titles	Debit	Credit
Adjusting Entries
Dec 31	Depreciation Expense	2,750
	Accumulated Depreciation: Equipment		2,750

Post adjusting entry:

Depreciation Expense
Dec 31	2,750
	2,750
Accumulated Depreciation: Equipment
		Beg. bal.	0
		Dec 31	2,750
		End. bal.	2,750

Balance Sheet ( Partial ) December 31
Equipment, at cost	$ 22,000
Accumulated Depreciation: Equipment	(2,750)
Equipment, net	19,250

Exercise 4: 9 :

Date	Account Titles	Debit	Credit
Adjusting Entries
Mar 31
1.	Depreciation Expense ( 280 x 3 )	840
	Accumulated Depreciation: Equipment		840
2.	Unearned Rent Revenue	6,200
	Rent Revenue		6,200
3.	Interest Expense	400
	Interest Payable		400
4.	Supplies Expense	2,150
	Supplies		2,150
5.	Insurance Expense ( $ 400 x 3 )	1,200
	Prepaid Insurance		1,200

Exercise 4 -18:

a.

Date	Account Titles	Debit	Credit
December 31, 2017		$	$
1.	Utilities Expense	425
	Utilities Payable		425
2.	Salaries and Wages Expense ( $ 3,500 / 7 x 4 )	2,000
	Salaries and Wages Payable		2,000
3.	Interest Expense	375
	Interest Payable		375
4.	Accounts Receivable	300
	Service Revenue		300
5.	Rent Receivable	6,000
	Rent Revenue		6,000

b.

	Date	Account Titles	Debit	Credit
			$	$
1.	January 11, 2018	Utilities Payable	425
		Cash		425
2.	January 4, 2018	Salaries and Wages Payable	2,000
		Cash		2,000
3.	January 1, 2018	Interest Payable	375
		Cash		375
4.	January 4, 2018	Cash	300
		Accounts Receivable		300
5.	January 2, 2018	Cash	6,000
		Rent Receivable		6,000