The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST). Helena’s Hire Cars Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank 18,140 Accounts receivable 21,340 Office supplies 640 Prepaid advertising 3,880 Hire cars 93,600 Accumulated Depreciation - hire cars 39,400 Accounts payable 10,800 Unearned hire fees 2,260 Helena, Capital 68,340 Helena, Drawings 20,600 Hire fees revenue 98,700 Wages expense 50,620 Fuel and oil expense 10,680 219,500 219,500 Additional information a. Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded. b. A physical count showed office supplies totalling $340 were still on hand at 30 June. c. Depreciation for 1 year on the hire cars is $12,400. d. Prepaid advertising has a balance of $600 at the end of the month. e. The balance in the Unearned Hire Fees account includes $1,800 received in May for hire services completed in June. Required: Prepare a 10-column worksheet for the year ended 30 June 2019.
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.
The unadjusted
Helena’s Hire Cars
Trial Balance
As at 30 June 2019
Account Debit Credit
Cash at bank 18,140
Accounts receivable 21,340
Office supplies 640
Prepaid advertising 3,880
Hire cars 93,600
Accumulated Depreciation - hire cars 39,400
Accounts payable 10,800
Unearned hire fees 2,260
Helena, Capital 68,340
Helena, Drawings 20,600
Hire fees revenue 98,700
Wages expense 50,620
Fuel and oil expense 10,680
219,500 219,500
Additional information
a. Petrol purchased on credit for $680 and used during the last week in June has not been paid for
or recorded.
b. A physical count showed office supplies totalling $340 were still on hand at 30 June.
c. Depreciation for 1 year on the hire cars is $12,400.
d. Prepaid advertising has a balance of $600 at the end of the month.
e. The balance in the Unearned Hire Fees account includes $1,800 received in May for hire services
completed in June.
Required:
Prepare a 10-column worksheet for the year ended 30 June 2019.
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