The general ledger of Bray Personnel Service includes

controlling accounts
The general ledger of Bray Personnel Service includes controlling accounts for Office
Equipment, No. 123, and Accumulated Depreciation, Office Equipment, No. 124. Bray’s
accountant also records the details of each item of office equipment in a subsidiary ledger.
During a three-year period, the following transactions affecting office equipment took place:Year
1 Jan. 5 Bought the following from Just-In-Time, Inc., for cash: Filing cabinet, $ 240, account no.
123-1, expected life five years, salvage value zero. Executive desk $ 960, account no. 123-2,
expected life six years, salvage value zero. Executive chair $ 360, account no. 123-3, expected
life three years, salvage value zero. (The above assets will be depreciated using the straight-
line method.) 7 Paid Clements and Johnson $ 1,280 for a custom-made counter, account no.
123-4, expected life ten years, salvage value zero; depreciation by straight-line method. Dec. 31
Made the adjusting entry to record depreciation of office equipment for the fiscal year. 31
Closed the Depreciation Expense, Office Equipment account into the Income Summary
account. Year 2 June 29 Bought carpet from Poet Floor Coverings on account, $ 1,280, account
no. 123-5, estimated life eight years, salvage value zero; depreciation by double-declining-
balance method. Dec. 31 Recorded the adjusting entry for depreciation of office equipment for
the fiscal year. 31 Closed the Depreciation Expense, Office Equipment account into the Income
Summary account. Year 3 June 30 Traded in the executive chair for a new one from Gomez
and Sheamer, account no. 123-6. The new chair cost $ 520, has an estimated life of eight
years, and has a zero salvage value; depreciation using the straight-line method. Bray
Personnel Service received a trade-in allowance of $ 50 on the old chair and paid the balance in
cash. Recorded the entry to depreciate the old chair to date. Made the entry to record the
exchange of assets, assuming that the exchange has commercial value. Dec. 31 Made the
adjusting entry to record depreciation of office equipment for the fiscal year. 31 Closed the
Depreciation Expense, Office Equipment and Loss on Disposal of Property and Equipment
accounts into the Income Summary account. Required 1. Record the transactions in general
journal form, pages 136 and 137. 2. With the purchase of each new asset, open an account in
the subsidiary ledger. 3. After each entry, post to the two controlling accounts and to the
subsidiary ledger. 4. Make a list of the balances in the subsidiary ledger accounts at the end of
Year 3 and compare the totals with the balances of the two controlling accounts.View Solution:
The general ledger of Bray Personnel Service includes controlling accounts
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