Read Each of the Following Transactions for Pickerton Printer Repair

question 24

Essay

Read each of the following transactions for Pickerton Printer Repair Services. Determine the accounts and amounts to be debited and credited in the necessary end-of-April adjustments.
A. On April 1, 2019, Pickerton Printer Repair Services, a new firm, bought supplies for $2,500. The
$2,500 was debited to the Supplies account. An inventory of supplies at the end of April showed that supplies costing $1,500 were on hand.
B. On April 1, 2019, the firm bought equipment costing $25,000. The equipment has an expected useful life of 10 years and a salvage value of $1,000. The firm will use the straight-line method of depreciation.
C. On April 1, 2019, the firm paid $7,200 rent in advance for a six-month period. The $7,200 was debited to the Prepaid Rent account.

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Definitions:

Land Improvements

Enhancements made to a parcel of land to increase its value, such as landscaping, paving, and lighting.

New Business Location

The process or consideration involved in expanding a business by establishing operations in a new geographical area or market.

Land Improvements

Enhancements made to a parcel of land, such as fencing, lighting, and paving, that increase the property's value.

Landscaping

The process of making a yard or other piece of land more attractive by altering the existing design, adding ornamental features, and planting trees and shrubs.