Stern Corporation

In: Business and Management

Submitted By ms123
Words 514
Pages 3
This is what we reviewed in class: Entry number Account (1) Cash Accumulated Depreciation- FM Factory Machinery (2) Tools used Expense Tools Inventory (3) Depreciation Expense-Automotive Accumulated Depreciation-Automotive Cash Accumulated Depreciation- Automotive Loss on sale Automotive equipment (4) Patent Amortization Expense Patent (5) Cash Accumulated Depreciation – OM Gain on sales Office Machines (6) Depreciation Expense-Furniture Accumulated Depreciation-Furniture Cash Accumulated Depreciation-Furniture Furniture and fixtures Gain on sales Now we need to finish the general ledger, number 7 The book states the following rates (all in percentages) Asset Building Factory machinery Furniture and fixtures Automotive equipment Office machines Factory Machinery Book value Asset fully depreciated Factory machinery sold TOTAL Accumulated depreciation (10%) Furniture and fixtures Book value Furniture sold TOTAL Accumulated depreciation (10%)

Amount Dr. $3,866 $27,367 $7,850 $7,850 $278 $278 $2,336 $5,458 $560 $8,354 $11,250 $11,250 $75 $1,027 $75 $1,027 $37 $37 $80 $432 $490 $22 Cr.

$31,233

Rate 2% 10% 10% 20% 10%

$3,425,585 ($85,000) ($31,233) $3,309,352 $330,935

$56,484 ($490) $55,990 $5,599

Automotive Equipment Automotive equipment Automotive sold TOTAL Accumulated depreciation (20%) Office machines Office machines Office machines sold TOTAL Accumulated depreciation (10%) That’s how he got: Entry number Account (7) Depreciation expense Accumulated depreciation Accumulated depreciation Accumulated depreciation Accumulated depreciation Accumulated depreciation

$58,298 ($8,354) $49,944 $9,989

$42,534 ($1,027) $41,507 $4,151

-

Building FM Furniture Automotive OM

Amount Dr. Cr. $398,779.28 $48,105.18 $330,935.20 $5,599.40 $9,988.80 $4,150.70

That way we can now calculate the amount we need to add to the depreciation on dec 31, 2005…...

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