A Adjusting Entry for Depreciation In straight line method depreciation is the same each year

Accumulated Depreciation increased uniformly and book value decrease uniformly until it reaches
the estimated residual value sothat depreciation =original cost divided service period ( time)

Original cost =9600/10 year youse ful life= 960 $ Each year Expend how 960/12 month =80$ per/Each/
month Depeceiate

time original cost depreciation expense Accumulated depreciation book Value

Oc 31/2020 9600 $ 80$ 80$ 9520$

Nove 30 /2020 9520 $ 80$ 160$ 9440$

Dece31 /2020 9440 $ 80$ 240 $ 9360$

B. Key inshurance Agency

Income before tax and after tax Adjusting Entry

December 31/2020

Revanue

Commssion income $31080

Operating Expense

Advertizing Expense $2400

Salary Expense $18000

Rent Expense $3800

Depreciation Expense $240

Total Expense 24440

Net income after tax 6640

Tax (40% of 6640) 2656

Net income after tax 3984

Cash

December31/2020 Dr $ 22565

Account Recivable

Dec 31/2020 DR $ 7050

Office Equipment

)ctober1/2020 DR $ 9600

October 30/2020 CR $ 80

>> >> BalanceDR$ 9520

November 30/2020 CR$80

Noveber 30/3030 balance DR $ 9440

December 31/2020 Cr $80

Account Payable

December 31/2020 CR$ 2260

Incomtax Payable

December31/2020 cr$4965

December 31/2020 cr$2656

Retain Earning

December 1/2020 cr7450

December 30/2020 Cr$ 4950

December 31/2020 Dr $(2500)

December 31/2020 Cr$3984

December 31/2020 Balance cr$11243

Depreciation Expense

October 30/2020 DR$ 80

November 30/2020 DR$80

December 31/2020 DR$80 Commission Earning

December 31/2020 CR$ 31080

Advertizing Expense

December 31/2020 DR $2400

Rent Expense

December 31/2020 Dr $3800

Salary Expense

December 31/2020 DR$18000 Capital stok

December 31/2020 Cr$20000

C . Key Inshurance Agency
Adjusted Trial balance
Eand of december31/2020
No Title DR CR
1 Cash $22565
2 Account Recivable $7050
3 Office Equpment $9360
4 Account Payable $2260
5 Income tax payable $ 7621
6 Accumulated Deprecation Office $240
Equpment
7 Capital stock $20000
8 Reta’in Earning $3984
9 divdevd $2500
10 Commission earned $31080
11 Adverting expe $2400
12 Rent expense $3800
13 Salary expense $18000
14 Depreciation Expense $240

65915 65185
D. Key Inshurance agency

Income statement

December 31/2014

Revanue $31080

Operating Expense

Advertizing Expense $2400

Salary Expense $18000

Rent Expense $3800

Deprecation Expense $240

Total Operatin Expense $22280

Income Before tax $ 6640

Tax of thise year $2656

Reain Earning $3984

 Key Inshuranc Agency

Retained Earning

December 31/2020

Retain Earning onNovember

30/2020 $7450

Retain Earning dece31/2020 $3984

Total income $11434

Didendes $(2500)

Net Retain Earning $8934