The adjusted trial balance of Gloria Services Center on December 31, 2020 is given below: Cash 161,000 Accounts Receivable155,000 Office Supplies39,500 Prepaid Insurance12,000 Equipment450.000 Accumulated Depreciation-Equipment150.000 Loans Payable 240.000 Accounts Payable47,500 Gloria, Capital200.000 Service Revenue605.000 Salaries Expense187.500 Supplies Expense156,000 Insurance Expense48.000 Depreciation Expense 25,000 Miscellaneous Expense8.500 In preparing the worksheet, the total debit of the balance sheet column exceeds the credit
The adjusted trial balance of Gloria Services Center on December 31, 2020 is given below: Cash 161,000 Accounts Receivable155,000 Office Supplies39,500 Prepaid Insurance12,000 Equipment450.000 Accumulated Depreciation-Equipment150.000 Loans Payable 240.000 Accounts Payable47,500 Gloria, Capital200.000 Service Revenue605.000 Salaries Expense187.500 Supplies Expense156,000 Insurance Expense48.000 Depreciation Expense 25,000 Miscellaneous Expense8.500 In preparing the worksheet, the total debit of the balance sheet column exceeds the credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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The adjusted trial balance of Gloria Services Center on December 31, 2020 is given below:
Cash 161,000
Accounts Receivable155,000
Office Supplies39,500
Prepaid Insurance12,000
Equipment450.000
Accumulated Depreciation -Equipment150.000
Loans Payable 240.000
Accounts Payable47,500
Gloria, Capital200.000
Service Revenue605.000
Salaries Expense187.500
Supplies Expense156,000
Insurance Expense48.000
Depreciation Expense 25,000
Miscellaneous Expense8.500
In preparing the worksheet, the total debit of the balance sheet column exceeds the credit
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