Sarib Shakeel

Section C
First Year Semester
Assignment 3 - Depreciation and Adjusting Entries

Answer Of Question Number 1:

A)
HEAVY MACHINERY = $10,000
DISPOSAL VALUE = $3,250
LIFE = 5 YEARS
RATE = 20%
DEPRECIATION ACCUMULATED
YEAR CALCULATION
EXPENSE DEPRECIATION
2016 $10,000 X 20% $2,000 $2,000

2017 $8,000 X 20% $1,600 $3,600

2018 $6,400 X 20% $1,280 $4,880

2019 $5,120 X 20% $1,024 $5,904

2020 $4,096 X 20% $819.2 $6,723.2

B)
Gain/Loss = Selling Price - Net Book Value

Gain/Loss = $6,500 - $6,400

Gain = $100

C)
Cash $6,500
Accumulated Depreciation $3,600
Heavy Machinery $10,000
Gain On Disposal $100

Answer Of Question Number 2:

A)
Aneeq Corporation
General Journal
Date Particular P/R
 Date Particular P/R

1 Office Supplies Expense

Office Supplies
(Remaining Office Supllies At The End Of Year)
2 Depreciation Expense (Furniture)
Allowance For Depreciation (Furniture)
(Depreciation Charged On Furniture)
3 Depreciation Expense (Building)
Allowance For Depreciation (Building)
(Depreciation Charged On Building)
4 Salaries Expense
Salaries Payable
(To Record Salaries Expense That Yet To Be Paid)
5 Account Recievable
Service Revenue
(To Record Service Revenue Earned On Credit)
6 Advance From Customer
Service Revenue
(Earned Revenue Out Of Advances)

B) Debit Cash
Cash 198,000 12/31/2020 Balance C/F

198,000

1/1/2020 Balance B/F 198,000

Debit Account Recievable

Balance 370,000
5 Earned Revenue 12,000 12/31/2019 Balance C/F

382,000

1/1/2020 Balance B/F 382,000

Debit Office Supplies

Office Supplies 6,000 1 Office Supplies Exp
12/31/2019 Balance C/F
6,000

1/1/2020 Balance B/F 2,000

 Debit Furniture
Balance 100,000
12/31/2019 Balance C/F
100,000

1/1/2020 Balance B/F 100,000

Debit Allowance For Depreciation (Furniture)

Balance
2 Dep Exp (Furniture)
12/31/2019 Balance C/F 60,000
60,000

1/1/2020 Balance B/F

Debit Building
Balance 250,000
12/31/2019 Balance C/F
250,000

1/1/2020 Balance B/F 250,000

Debit Allowance For Depreciation (Building)

Balance
3 Dep Exp (Building)
12/30/2019 Balance C/F 140,000
140,000

1/1/2020 Balance B/F

Debit Accounts Payable

Balance
12/31/2019 Balance C/F 380,000
380,000

1/1/2020 Balance B/F

Debit Salaries Payable

Balance
4 Salaries Exp
12/31/2019 Balance C/F 10,000
 10,000

1/1/2020 Balance B/F

Debit Advance From Customer

6 Earned Revenue 32,000 Balance
12/31/2019 Balance C/F 13,000
45,000

1/1/2020 Balance B/F

Debit Capital
Balance
12/31/2019 Balance C/F 293,000
293,000

1/1/2020 Balance B/F

Debit Drawings
Balance 70,000
12/31/2019 Balance C/F
70,000

1/1/2020 Balance B/F 70,000

Debit Service Revenue

Balance
5 Account Recievable
6 Adv From Customer
12/31/2019 Balance C/F 330,000
330,000

1/1/2020 Balance B/F

Debit Salaries Expense

Balance 172,000
Salaries Exp 5,000
12/31/2019 Balance C/F
177,000

1/1/2020 Balance B/F 177,000

 Debit Sundry Expenses
Balance 13,000
12/31/2019 Balance C/F
13,000

1/1/2020 Balance B/F 13,000

Debit Office Supplies Expense

1 Office Supplies 4,000
12/31/2019 Balance C/F
4,000

1/1/2020 Balance B/F 4,000

Debit Depreciation Expense (Furniture)

2 All. For Dep (Furn) 20,000
12/31/2019 Balance C/F
20,000

1/1/2020 Balance B/F 20,000

Debit Depreciation Expense (Building)

3 All. For Dep (Build) 10,000
12/31/2019 Balance C/F
10,000

1/1/2020 Balance B/D 10,000

ADJUSTED TRIAL BALANCE

S.NO TITLE OF ACCOUNTS DEBIT
1 Cash 198,000
2 Account Recievable 382,000
3 Office Supplies 2,000
4 Furniture 100,000
5 Allowance For Depreciation (Furniture)
6 Building 250,000
7 Allowance For Depreciation (Building)
8 Account Payable
9 Salaries Payable
10 Advance From Customers
11 Capital
12 Drawings 70,000
 13 Service Revenue
14 Salaries Expense 177,000
15 Sundry Expense 13,000
16 Office Supplies Expense 4,000
17 Depreciation Expense (Furniture) 20,000
18 Depreciation Expense (Building) 10,000
1,226,000

C)
Income Statement
For The Year Ended 31 Dec 2019
Less: Expenses
Salaries Expense -177,000
Sundry Expense -13,000
Office Supplies Expense -4,000
Depreciation Expense (Furniture) -20,000
Depreciation Expense (Building) -10,000
Total Expenses
Add: Income By Services Rendered
Service Revenue
Net Income

D)
Balance Sheet/Statement Of Affairs
As At December 31, 2019
Capital Employed:
Non-Current Assets:
Furniture 100,000
Less: All. For Dep. (Furniture) -60,000 40,000

Building 250,000
Less: All. For Dep. (Building) -140,000 110,000
Current Assets:
Cash 198,000
Account Recievable 382,000
Office Supplies 2,000 582,000
Less:Current Liabilities:
Account Payable -380,000
Salaries Payable -10,000
Advance From Customer -13,000 -403,000
Working Capital
Finance By:
Capital 293,000
Less: Drawings -70,000 223,000
Add: Net Income 106,000
ries

REMAINING
BOOK VALUE
$8,000

$6,400

$5,120

$4,096

$3,276.8

Debit Credit
 Debit Credit

4,000
4,000

20,000
20,000

10,000
10,000

5,000
5,000

12,000
12,000

32,000
32,000

Credit
198,000

198,000

Credit

382,000

382,000

Credit
4,000
2,000
6,000
Credit

100,000
100,000

Credit
40,000
20,000

60,000

60,000

Credit

250,000
250,000

Credit
130,000
10,000

140,000

140,000

Credit
380,000

380,000

380,000

Credit
5,000
5,000
10,000

10,000

Credit
45,000

45,000

13,000

Credit
293,000

293,000

293,000

Credit

70,000
70,000

Credit
286,000
12,000
32,000

330,000

330,000

Credit

177,000
177,000
Credit

13,000
13,000

Credit

4,000
4,000

Credit

20,000
20,000

Credit

10,000
10,000

CREDIT

60,000

140,000
380,000
10,000
13,000
293,000
330,000

1,226,000

-224,000

330,000
106,000

150,000

179,000
329,000
329,000