Record the following transactions into the expanded accounting equation for the Mayoras' Law Firm. Note that all titles have beginning balances. (You will need to determine the beginning capital balance.)
a. Provided legal services for cash, $1,200
b. Billed customers for services rendered, $2,400
c. Received and paid the monthly utility bill, $300
d. Collected $600 on account from customers
e. Paid supplies expense, $250
f. Withdrew $300 cash for personal use
Definitions:
MACRS
Modified Accelerated Cost Recovery System, a method of depreciation in the United States that allows businesses to recover investments in certain property through tax deductions over a specified life.
Scrap Value
The estimated value that an asset will realize upon its sale at the end of its useful life; often used in depreciation calculations.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other declines in value.
Depreciable Rate
The rate at which an asset loses its value over time for accounting and tax purposes, determining its annual depreciation.
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