Practice Problems

Complete these practice problems. Check your answers after you finish.

Demonstration problem

Solution to demonstration problems

Date Account Titles and Explanation Post.
Ref.		 Debit Credit
2010 Dec. 31 Supplies Expense 3 6 0 0
Supplies on Hand
3 6 0 0
To record supplies expense ($6,000 - $2,400).

31 Rent Expense
 1
 6 8
 0 0
Prepaid Rent
1 6 8 0 0
To record rent expense ($25,200 X 8/12).

31 Depreciation Expense – Buildings
4 7 5 0
Accumulated Deprecation – Buildings
4 7 5 0
To record depreciation ($200,000 - $10,000 / 40 years).

31 Salaries Expense
6 0 0 0
Salaries Payable
6 0 0 0
To record accrued salaries.

31 Unearned Delivery Fees
1 0 0 0
Service Revenue
1 0 0 0
To record delivery fees earned.

31 Accounts Receivable
6 0 0
Service Revenue
6 0 0
To record delivery fees earned.

Eight years; computed as:

\frac{\text { Total accumulated deprecation }}{\text { Annual deprecation expense }}=\frac{\text { USD } 33,250+\mathrm{USD} 4,750}{\operatorname{USD} 4,750}