A machine costing $ 45,000 has a life of 8 years. The salvage value is $ 12,000.

Question

A machine costing $ 45,000 has a life of 8 years. The salvage value is $ 12,000. It was purchased on February 1. The depreciation expense for the calendar year is: (Do not round any intermediary calculations. Round your final answer to the nearest dollar.)

A. $ 469

B. $ 3,781

C. $ 344

D. $ 5,156

The adjusted trial balance proves that:

A. the balance of the adjusted trial balance is correct.

B. all adjusting entries have been recorded correctly.

C. debit totals equal credit totals.

D. no adjusting entry has been entered twice.

Explanation / Answer

B. $3781 Depreciation expenses per annum = (cost of asset-salvage value)/useful life = (45000-12000)/8 = $4125 Number of months related to current calender year = 11 (feb to dec) Depreciation for the calender year = $4125*11/12 = $3781 2) B. all adjusting entries have been recorded correctly. The adjusted trial balance is prepared after passing all adjusting entries. Hence it shows the effect of all adjusting entries. The adjusted trial balance proves that all adjusting entries have been recorded correctly

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