rnerstone Exercise 322 Algorithmic Video nerstone Exercise 3

rnerstone Exercise 3-22 Algorithmic Video nerstone Exercise 3-22 (Algorithmic) ustment for Depreciation Garde Company has a machine that it purchased for $125,700 on January 1. Annual depreciation on the mac quired: Hide 1. Prepare the adjusting entry needed at the end of the year. Dec. 31

Solution

1. depriciation entry

DEPRECIATION A/C DR
TO ACCUMULATED DEPRECIATION

2.

WAGES A/C DR        2900
TO WAGES PAYBLE         2900

(BEING EXPENSE ACCRUED BUT NOT YET PAID)

3

ACCOUNT RECEIVABLE / DEBTOR   A/C    DR   3750
TO REVENUE                                                                   3750

4.

ADVANCE RECEIVED A/C   DR 2400
TO REVENUE/SALES                        2400

5

EXPIRED INSURANXE A/C DR    1200
TO PREPAID INSURANCE                1200