Details of this Paper

Big Ed's Motorcycle Shop is nearing the fiscal year-end. You have been asked to prepare the adjusting and closing

Description

solution


Question

Big Ed's Motorcycle Shop is nearing the fiscal year-end. You have been asked to prepare the adjusting and closing entries to prepare the books for the 2008 year-end.;Following is the information you will need to make your adjusting entries;1. Office equipment has a life of five years with no residual value.;2. Store equipment has a life of five years with no residual value.;3. Shop equipment has a life of ten years with no residual value (assume new equipment was purchased Jan. 1.);4. A physical inventory of Merchandise Inventory, Parts revealed an actual balance of $97,000.;5. A physical inventory of Merchandise Inventory, Motorcycles revealed that the balance was accurate.;6. Office supplies in the amount of $1,500 were used throughout the year.;7. Salaries should be accrued as follows;Sales - $3,000;Service - $5,000;Office - $1,500;8. Insurance in the amount of $1,200 was used throughout the year.;9. Interest on the Note Payable is 8% (assume new note was taken out on Jan. 1.);10. Use straight line depreciation. Calculate the depreciation using the asset balance and ignore the balance in Accumulated Depreciation. Assume that no expense has been recorded for the year.

 

Paper#79877 | Written in 18-Jul-2015

Price : $22
SiteLock