On October 1, 2015, Ming Wo Ltd

question 60

Multiple Choice

On October 1, 2015, Ming Wo Ltd.places a new asset into service.The cost of the asset is $9,000 with an estimated 5-year life and $1,500 residual value.Assuming that Ming Wo uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2015?

• A)$8,100
• B)$6,750
• C)$6,000
• D)$5,400

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Definitions:

Accounts Payable

Financial obligations or debts owed by a business to its suppliers or creditors for goods and services received.

Cash Payments Journal

An accounting journal used to record all cash payments, including expenses and creditor payments.

Check Register

A record kept to track written checks, deposits, and withdrawals in a checking account, aiding in account reconciliation and financial management.

Stock Purchases Register

A ledger or record keeping log for tracking all purchases of stock inventory over a period.