Ray Autobody purchased a car jack for $16,000 on July 1.The estimated useful life of the car jack is 4 years.If the financial statements are prepared on December 31, Ray should make the following adjusting journal entry, assuming adjusting entries are made only annually:
A) debit Depreciation Expense, $2,000, credit Accumulated Depreciation-Equipment, $2,000.
B) debit Depreciation Expense, $1,667, credit Accumulated Depreciation-Equipment, $1,667.
C) debit Depreciation Expense, $4,000, credit Accumulated Depreciation-Equipment, $4,000.
D) debit Equipment, $2,000, credit Accumulated Depreciation-Equipment, $2,000.
Correct Answer:
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A)asset account.
B)revenue
Q71: Which of the following statements is true
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A)paid and recorded in an
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A)received and recorded as liabilities
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Q78: Accumulated Depreciation is a(n)
A)expense account.
B)shareholders' equity account.
C)liability
Q79: An asset-expense relationship exists with
A)liability accounts.
B)revenue accounts.
C)prepaid
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