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alexandria
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Homework Statement
Use a journal to prepare end-of-month adjusting entries for June 30th, 20-- for the following. The accounting period is one month.
a) The balance in the supplies account is $865. Inventory taken at the end of the month shows supplies on hand worth $349.
b) The beginning balance in the prepaid rent account is $9000. The monthly rent is $3000
c) A 12-month insurance policy was purchased for $2400 at the beginning of the month. The balance in the prepaid insurance account is $2400.
d) The truck account has a balance of $60 000, and accumulated depreciation - truck has a balance of $30 600. The depreciation rate is 30 % a year, using the declining balance method.
Homework Equations
Calculating depreciation using the declining-balance method:
Net book value at the beginning of the year x depreciation rate = annual depreciation expense
The Attempt at a Solution
Can someone please tell me if I did part a), b), and c) correctly?
The only question I am really having a problem with is part d), I tried to fill out an adjusting entry for part d), but I don't understand what to do :p
for part d), i was given the accumulated depreciation - truck which was $30 600. They gave me the accumulated depreciation for the year, which is what I am assuming. So to get the accumulated depreciation for the month of june, i have to divide $30 600 by 12. so, $30 600/12 = $2550
im not sure if this is correct. can someone please explain this part? Thanks :)