Use the Following to Answer Questions

question 30

Multiple Choice

Use the following to answer questions
Jing Company was started on January 1,2016 when it issued common stock for $50,000 cash.Also,on January 1,2016 the company purchased office equipment that cost $34,000 cash.The equipment was delivered under terms FOB shipping point,and transportation cost was $2,000.The equipment had a five-year useful life and a $12,000 expected salvage value.
-Using double-declining balance depreciation,determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the December 31,2018 financial statements.

• A)$0/$24,000.
• B)$960/$24,000.
• C)$8,640/$23,040.
• D)$5,184/$28,224.

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Definitions:

Ledger

A book or collection of accounts in which account transactions are recorded.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific point in time.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure that total debits equal total credits.

Journal Entry

A record in the books of accounts that represents each business transaction, detailing the accounts and amounts to be debited and credited.