BE4-5 At the end of its first year, the trial balance of Rayburn Company shows Equipment $22,000 and zero balances in Accumulated Depreciati

BE4-5 At the end of its first year, the trial balance of Rayburn Company shows Equipment $22,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,750. Prepare the annual adjusting entry for depreciation at December 31, post the adjustments to T-accounts, and indicate the balance sheet presentation of the equipment at December 31.

0 thoughts on “BE4-5 At the end of its first year, the trial balance of Rayburn Company shows Equipment $22,000 and zero balances in Accumulated Depreciati”

  1. Answer:

    Please see the answer below:

    Explanation:

    • Dated: December 31

    Debit: Depreciation Expense         $2,750

    Credit: Accumulated Depreciation           $2,750

    To record adjusting entry for Depreciation Expense of Equipment.

    • For T-accounts the entries will made as above, Depreciation T-Account will be Debited with $2750 and Accumulated Depreciation T-Account will be credited with $2750.
    • Rayburn Company

    Balance Sheet as of December 31

    Fixed Assets:                                                 $               $  

    Equipment                                                  22,000              

    Less: Accumulated Depreciation               (2,750)          

    Net Cost of Equipment as of Dec 31                           19,250

    Reply

Leave a Comment

÷ two = one