Question

jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first, then credits. exclude explanations from any journal entries.) e. the unadjusted balance of the supplies account is $3,100. the total cost of supplies on hand is $1,200. accounts debit credit e. supplies expense 1,900 supplies 1,900 f. equipment was purchased on january 1 of this year at a cost of $140,000. the equipments useful life is five years. there is no residual value. record depreciation for this year and then determine the equipments book value. accounts debit credit f.

Explanation:

Step1: Calculate annual depreciation

The straight - line depreciation formula is $\text{Depreciation}=\frac{\text{Cost}-\text{Residual Value}}{\text{Useful Life}}$. Here, cost = $140000$, residual value = $0$, and useful life = 5 years. So, $\text{Depreciation}=\frac{140000 - 0}{5}=28000$.

Step2: Record the adjusting entry

The adjusting entry for depreciation debits Depreciation Expense - Equipment and credits Accumulated Depreciation - Equipment.

Answer:

Accounts	Debit	Credit
Accumulated Depreciation - Equipment		28000