ORIOLE COMPANY Trial Balance August 31, 2020 Before After Adjustment Adjustment Dr. Cr. Dr. Cr. Cash $10,300 $10,300 Accounts Receivable 8,700 9.900 Supplies 2,300 600 Prepaid Insurance 3,800 2,700 Equipment 13,600 13,600 Accumulated Depreciation-Equipment $ 3,800 $ 4,500 Accounts Payable 5,900 5,900 Salaries and WWages Payable 1,200 Unearned Rent Revenue 1,300 700 Owner's Capital 15,000 15,000 Service Revenue 34,000 35,200 Rent Revenue 10,900 11,500 Salaries and Wages Expense 17,100 18,300 Supplies Expense 1,700 Rent Expense 15,100 15,100 Insurance Expense 1,100 Depreciation Expense 700 $70,900 $70,900 $74,000 $74,000
ORIOLE COMPANY Trial Balance August 31, 2020 Before After Adjustment Adjustment Dr. Cr. Dr. Cr. Cash $10,300 $10,300 Accounts Receivable 8,700 9.900 Supplies 2,300 600 Prepaid Insurance 3,800 2,700 Equipment 13,600 13,600 Accumulated Depreciation-Equipment $ 3,800 $ 4,500 Accounts Payable 5,900 5,900 Salaries and WWages Payable 1,200 Unearned Rent Revenue 1,300 700 Owner's Capital 15,000 15,000 Service Revenue 34,000 35,200 Rent Revenue 10,900 11,500 Salaries and Wages Expense 17,100 18,300 Supplies Expense 1,700 Rent Expense 15,100 15,100 Insurance Expense 1,100 Depreciation Expense 700 $70,900 $70,900 $74,000 $74,000
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 17PB: Using the following Company X information, prepare a Retained Earnings Statement: Retained earnings...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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