Question

Choose from any list or enter any number in the input fields and then click Check Answer. 6 parts remaining More Info a. The business has interest expense of $ 3 comma 600 that it must pay early in January 2021. b. Interest revenue of ​$4 comma 800 has been earned but not yet received. c. On July ​1, 2020​, when the business collected ​$12 comma 600 rent in​ advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two​ years' rent. d. Salary expense is ​$6 comma 400 per daylong dashMonday through Fridaylong dashand the business pays employees each Friday. This​ year, December 31 falls on a Thursday. e. The unadjusted balance of the Supplies account is ​$3 comma 500. The total cost of supplies on hand is $ 1 comma 600. f. Equipment was purchased on January 1 of this year at a cost of ​$160 comma 000. The​ equipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine the​ equipment's book value.

Answer 1

journal entry

depreciaiton expense 32,000

accumulated expense 32,000

book value:

equipment 160,000

acc dep (32,000)

net 128,000

Step-by-step explanation:

Record depreciation for this year and then determine the​ equipment's book value:

Equipment cost: 160,000

useful life: 5 years

no residual value

depreciation expense: 160,000/5 = 32,000

we will recognize dep expense this amount and credit the accumulate depreciation in the equipment