Saturday, 17 November 2018

Daniel Company started operations on January 1 of the current year. It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions:

Daniel Company started operations on January 1 of the current year. It is now December 31, the end of the current annual accounting period. The part-time bookkeeper needs your help to analyze the following three transactions:
  
  1. During the year, the company purchased office supplies that cost $3,500. At the end of the year, office supplies of $970 remained on hand.
  2. On January 1 of the current year, the company purchased a special machine for cash at a cost of $29,500. The machine's cost is estimated to depreciate at $2,950 per year.
  3. On July 1, the company paid cash of $1,480 for a two-year premium on an insurance policy on the machine; coverage began on July 1 of the current year.

Required:

Complete the following schedule with the amounts that should be reported for the current year.

 

Explanation:


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