Lamburg Company has prepared the following adjusting entries at its fiscal year end on June 30, 2014. The adjustment for depreciation has not yet been prepared for the current year. Lamburg's building was purchased 7 years ago. Lamburg follows straight-line depreciation and for the past 6 years depreciation has been properly recorded. The Land was purchased 11 years ago.
Instructions
a. Prepare an adjusting entry to record depreciation expense.
b. Using the chart below prepare an adjusted trial balance in the last two columns. Use the middle two columns to record any increases and decreases to the account from the adjusting entries. If additional accounts are needed, add them at the bottom of the list of accounts in the trial balance.
c. Prepare an income statement, statement of owner's equity and a balance sheet.

Question

Lamburg Company has prepared the following adjusting entries at its fiscal year end on June 30, 2014.  The adjustment for depreciation has not yet been prepared for the current year. Lamburg's building was purchased 7 years ago. Lamburg follows straight-line depreciation and for the past 6 years depreciation has been properly recorded. The Land was purchased 11 years ago.
Instructions 
a. Prepare an adjusting entry to record depreciation expense.
b. Using the chart below prepare an adjusted trial balance in the last two columns. Use the middle two columns to record any increases and decreases to the account from the adjusting entries. If additional accounts are needed, add them at the bottom of the list of accounts in the trial balance.
c. Prepare an income statement, statement of owner's equity and a balance sheet.

Quizplus · Accepted Answer

The Answer of Lamburg Company has prepared the following adjusting entries at its fiscal year end on June 30, 2014.  The adjustment for depreciation has not yet been prepared for the current year. Lamburg's building was purchased 7 years ago. Lamburg follows straight-line depreciation and for the past 6 years depreciation has been properly recorded. The Land was purchased 11 years ago.
Instructions 
a. Prepare an adjusting entry to record depreciation expense.
b. Using the chart below prepare an adjusted trial balance in the last two columns. Use the middle two columns to record any increases and decreases to the account from the adjusting entries. If additional accounts are needed, add them at the bottom of the list of accounts in the trial balance.
c. Prepare an income statement, statement of owner's equity and a balance sheet.

Lamburg Company Has Prepared the Following Adjusting Entries at Its