1.At the end of its first year, the trial balance of Boyer Company shows Equipme
ID: 2480635 • Letter: 1
Question
1.At the end of its first year, the trial balance of Boyer Company shows Equipment $23,200 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,100.
--Prepare the adjusting entry for depreciation at December 31
-Post the adjustments to T-accounts.
-Indicate the balance sheet presentation of the equipment at December 31.
2. On July 1, 2014, Seng Co. pays $15,300 to Nance Insurance Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31.
-For Seng Co., journalize the entry on July 1 and adjusting entry on December 31.
-For Seng Co., post the entries passed on on July 1 and on December 31.
Explanation / Answer
adjusting entry for depreciation at December 31
4100
T Accounts
debit credit deprection expenses a/C 4100 to Accumlated deprection4100
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