Read Each of the Following Transactions for Pickerton Printer Repair

question 22

Essay

Read each of the following transactions for Pickerton Printer Repair Services. Determine the accounts to be debited and credited in the necessary end-of-April adjustments.
A. On April 1, 2013, 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 June showed that supplies costing $1,500 were on hand.
B. On April 1, 2013, the firm bought equipment costing $20,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
C. On April 1, 2013, 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:

Objectively

Objectively means considering something based on facts and without influence from personal feelings or biases.

Incentives

Rewards or penalties that motivate individuals or entities to act in a desired manner, typically aimed at aligning interests or encouraging specific behaviors.

Personal Costs

Expenses directly paid by an individual, often including living expenses, tuition, and personal bills.

Economic Activity

Every activity related to creating, distributing, and using products and services within an economic system.