CHART OF ACCOUNTS 101 Cash 401 Service Revenue 211 Notes Payable 212 Accounts Payable 451 Rent Revenue 111 Notes Receivable 112 Accounts Receivable 214 Interest Payable 491 Interest Revenue 216 Wages Payable 511 Depreciation Expense 513 Insurance Expense 515 Rent Expense 114 Interest Receivable 261 Unearned Revenue 125 Supplies 311 Common Stock 130 Prepaid Insurance 132 Prepaid Rent 320 Retained Earnings 517 Wages Expense 519 Supplies Expense 591 Interest Expense 161 Equipment 162 Accumulated Depreciation Corporation purchased equipment on July 1 and gave an 18-month, 10% interest-bearing note with a face value of $45,000. Depreciation will be for 10 years using the straight-line method. The December 31 depreciation adjusting entry would be: Date Enter Account Number Debit Credit XX/XX/XX Would this adjusting entry be reversed? (Y for Yes or N for No)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CHART OF ACCOUNTS
101 Cash
401 Service Revenue
211 Notes Payable
212 Accounts Payable
451 Rent Revenue
111 Notes Receivable
214 Interest Payable
491 Interest Revenue
112 Accounts Receivable
114 Interest Receivable
216 Wages Payable
511 Depreciation Expense
125 Supplies
261 Unearned Revenue
513 Insurance Expense
130 Prepaid Insurance
311 Common Stock
515 Rent Expense
320 Retained Earnings
517 Wages Expense
519 Supplies Expense
132 Prepaid Rent
161 Equipment
162 Accumulated Depreciation
591 Interest Expense
Corporation purchased equipment on July 1 and gave an 18-month, 10% interest-bearing note with a face value of $45,000. Depreciation will be for 10 years
using the straight-line method. The December 31 depreciation adjusting entry would be:
Date
Enter Account Number
Debit
Credit
XX/XX/XX
Would this adjusting entry be reversed?
(Y for Yes or N for No)
Transcribed Image Text:CHART OF ACCOUNTS 101 Cash 401 Service Revenue 211 Notes Payable 212 Accounts Payable 451 Rent Revenue 111 Notes Receivable 214 Interest Payable 491 Interest Revenue 112 Accounts Receivable 114 Interest Receivable 216 Wages Payable 511 Depreciation Expense 125 Supplies 261 Unearned Revenue 513 Insurance Expense 130 Prepaid Insurance 311 Common Stock 515 Rent Expense 320 Retained Earnings 517 Wages Expense 519 Supplies Expense 132 Prepaid Rent 161 Equipment 162 Accumulated Depreciation 591 Interest Expense Corporation purchased equipment on July 1 and gave an 18-month, 10% interest-bearing note with a face value of $45,000. Depreciation will be for 10 years using the straight-line method. The December 31 depreciation adjusting entry would be: Date Enter Account Number Debit Credit XX/XX/XX Would this adjusting entry be reversed? (Y for Yes or N for No)
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