Answer the Following Questions. (Show Your Work.)

question 51

Essay

Answer the following questions. (Show your work.)
a. A machine was purchased on July 1, 2009. It had a cost of $36,000 and an estimated useful life of nine years with zero value at that time. What is the machine's carrying value after four years?
b. On April 1, 2010, a company paid in advance $54,000 for three years' insurance. How much Prepaid Insurance remains on the balance sheet on December 31, 2010?
c. A company began the year with $800 in supplies, purchased $2,000 in supplies, and ended the period with $600 in supplies. How much is Supplies Expense for the period?
d. A company was paid $1,800 in advance for services to be performed. At year end, one-third had not yet been earned. How much in Service Revenue should be recorded?

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Definitions:

Calculate

Determine mathematically.

Percent Change

The extent to which a quantity has increased or decreased, expressed as a percentage.

Initial Value

The starting monetary or numerical value of an investment, account, or another financial instrument before any earnings or losses.

Reduction

The act of making something lesser in size, amount, or degree.