Arial 10A-A Paste 50 Sheet Legal Pad The computer equipment on the Post Closing

Question

Arial 10A-A Paste 50 Sheet Legal Pad The computer equipment on the Post Closing Trial Balance from last year was purchased last January for 4. $20,500.00. It is being depreciated based upon an estimated useful life of 5.0 years with no salvage value. Calculate the depreciation for one year using the double-declining method of depreciation The Ricoh Color Copier, part of the office equipment, is estimated to be able to make 480,000 copies and have a using the ativity-based method of depreciation. 45. salvage value of $500.00. During December,8,750 copies were made. Calculate the depreciation for one year The remaining office equipment, $70,100.00, was purchased last January and has an estimated useful life of 10.0 years with a salvage value of53,100.00. Calculate the depreciation for one year using the straight-line method or depreciation. 46. 47. A review of Byte's payroll records show that unpaid salaries in the amount of S1,230.00 are owed by Byte for three days, December 28-31. Cgnore payroll taxes at this time.) Byte's CPA indicated that 9.00% of the outstanding Accounts Receivable would be a good estimate of the |uncollectable accounts. Record the bad debt expense using the allowance method taking into consideration the allowance in the account before this entry 48. 49 Byte's income taxes are to be computed at the rate of 25% of net income before taxes. IMPORTANT NOTE: Since the income taxes are a percent of the ncome Statement through the Net Income Before Tax line.] net income, you will want to prepare the your adjusting journal entrics to the general lediger and prepare the Aljusted Trial Balance as of December 31. A. Using the Adjusted Trial Balance as of December 31 as a reference, prepare the Income Statement, Statement of Stockholder's Equity, Balence Sheet and Statement of Cash Flows B. TransactionsAdjusting Transactions Closing Transactions Goneral Journal General Ledger

Explanation / Answer

Note:

Balance in Allowance for doubtful accounts is required for recording entry number 48

All account balances required for computing net income and then income tax thereon for entry number 49

Calculations:

Number Account Titles and Explanations Debit Credit 44 Depreciation expense-Computer equipment 4920 Accumulated depreciation-Computer equipment 4920 (To record depreciation expense on computer equipment) 45 Depreciation expense-Office equipment 875 Accumulated depreciation-Office equipment 875 (To record depreciation expense on color copier) 46 Depreciation expense-Office equipment 6700 Accumulated depreciation-Office equipment 6700 (To record depreciation expense on remaining office equipment) 47 Salaries expense 1230 Salaries payable 1230 (To record unpaid salaries)

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