This Question 7 pts 3 of 4 0 completeY This Test 30 pts poss

This Question: 7 pts 3 of 4 (0 complete)Y This Test: 30 pts possib Question Help ? On May 1, Orlando Gold Exchange paid cash of $32,400 for computers that are expected to remain useflul for three years At the end of three years, the value of the computers is expected to be zero Read the tequirements Requirement 1. Calculate the amount of depreciation for the month of May using the straight-line depreciation method Begin by selecting the labels, han enter the amounts and compute the amount of dopreciation for the month of May (Abbreviation used Acc Depreciatlion Accumulated Dupreciation Enter a\" for any zero balances ) )I / 12 12 months Requirement 2. Recard the adjusting entry for depreciation on May 31. (Record debits Srat, then credts Select the explanation on the last line of the jounal entry table ) Date Accounts and Explanation Debit Credit May 31 O Requirements 1. Calculate the amount of deprecaion for the month of May using the straight-line depreciation method 2. Record the adjusting enty for depreciation on May 31 . Post the purchase of May 1 and the depreciation on May 31 to T-accounts for t ac3 Regairement 3. Post he purchase of May 1 and the depreciation on May 31 to T-acounts for the following Depreciation Ex account) the folowing accounts Computer Equipment, Accumulated Depreciation Computer Equipment and Depreciation Expense-Compute Equipment Show their balances at May 3 What is the computer equipment\'s book value at May 317 Equipment Show their balances at May 31 (Use dates an posting references to p Computer Equipment Accumlated Depreciation Computer E PrintDone Choose trom any ist or enter any number in the input fields and then continue to the next question

Solution

1.

Cost of computers = $ 32,400

Useful life of computers = 3 years

Annual depreciation = Cost price - Scrap value

Useful life ( In years)

= 32,400 - 0

3

= $ 10,800

Depreciation for the month of May = 10,800/12

= $ 900

2.

Journal

May 31 Depreciation A/c Dr. 900

To Accumulated Depreciation A/c 900

( Depreciation charged on computers for the month of May )

3.

Dr. Computer Equipment A/c Cr.

Dr. Accumulated Depreciation-Computer Equipment A/c Cr.

Dr. Depreciation expense-Computer Equipment A/c Cr.

4.

Value of computers as at May 31 = 10,800 - 900

= $ 9,900

May 1	Cash A/c	32,400	May 31	Balance c/d	32,400
		32,400			32,400
June 1	Balance b/d	32,400