Jones Surf Shop is ready to expand their operations end wants to bUy some equipment to perfom repairs on damaged equiprr›ent. Help Jeremy make some
decisions about how to tecord the purchased and calculate depreciation as necessary.
On April 1 Jeremy has placad an order for a surf board repalr machine fhat wlll be hou sad In the backroom of the retail shop. He paid cash for lhe machine
and it cost 515,000. He expects lhat the machine will have a useful life of 5 years and that he should be able to sell il al the end for abouE s2500. Complete
lhe journal entry for lhe purchase of lhe machlne.
S 16000
After talking with Jeremy about the uses of the machine you have decided that straight line depreciation makes the most sense. Calculate what the annual
dapraciation for tha machine will be under the straight line depreciation mathod.
"
Book Value
Useful Life (in yearsl
Salvage IResidual) Value
Oepreciable Base $ 12,500
Oepreciation Amount per $ 2,500
year
Oepreciation Amount per $ 208.33
Month
As of April 30, joumalize the depreciation entry for April, the first month the' asset is put into service.
Aprll 30, Depreciation Expense S 2o843
2025 Accumulated 0oprec1atirxt
Sally’s Surf Pros has reached out to Jeremy about setting up some prepaid repair work for her œmpetitive surf clients. She wouJd like to prepay for ten tune-
ups to get a discounted rate. Jeremy agrees to a pûœ of $200 per tune up for the bundle. On April 1S Sally pays cash far ffie $2000 prepaid tuneups.
Joumalize the receipt of the prepaid revenue
One of Sally's pros œmee in on April 25 to use one of the prepaid tUneups. Record the journal for compleîing Ïhis work
Wlth the Increase In operations Jeremy has decided to take out some debt to help finance the growlh. Ne has reached out to Valley B8nk and they have
agreed la a bank loan in the amoun! of 5100,000 on April 1. The hems of the loan include a repayment of principal at the eral of S years. The annual
Interest rale on the loan is 8%, recognized monthly.
Joumalize the recelpt of the cash from the ban
Calculate the Interest recognlzed monthly.
Principal (Amount Borrowed) Interest Rate
Period of Time (in months) Monthly Interest Rate
Creale the journal l‹› raCord the ir›leresI for the firsl n onlh a[ Interest
,equipment to perfom repairs on damaged equiprr›ent. Help Jeremy make some
necessary.
lll be hou sad In the backroom of the retail shop. He paid cash for lhe machine
years and that he should be able to sell il al the end for abouE s2500. Complete
at straight line depreciation makes the most sense. Calculate what the annual
hod.
asset is put into service.
epair work for her œmpetitive surf clients. She wouJd like to prepay for ten tune-
r the bundle. On April 1S Sally pays cash far ffie $2000 prepaid tuneups.
Record the journal for compleîing Ïhis work
o help finance the growlh. Ne has reached out to Valley B8nk and they have
e loan include a repayment of principal at the eral of S years. The annual
decisions about how to tecord the purchased and calculate depreciation as necessary.
On April 1 Jeremy has placad an order for a surf board repalr machine fhat wlll be hou sad In the backroom of the retail shop. He paid cash for lhe machine
and it cost 515,000. He expects lhat the machine will have a useful life of 5 years and that he should be able to sell il al the end for abouE s2500. Complete
lhe journal entry for lhe purchase of lhe machlne.
S 16000
After talking with Jeremy about the uses of the machine you have decided that straight line depreciation makes the most sense. Calculate what the annual
dapraciation for tha machine will be under the straight line depreciation mathod.
"
Book Value
Useful Life (in yearsl
Salvage IResidual) Value
Oepreciable Base $ 12,500
Oepreciation Amount per $ 2,500
year
Oepreciation Amount per $ 208.33
Month
As of April 30, joumalize the depreciation entry for April, the first month the' asset is put into service.
Aprll 30, Depreciation Expense S 2o843
2025 Accumulated 0oprec1atirxt
Sally’s Surf Pros has reached out to Jeremy about setting up some prepaid repair work for her œmpetitive surf clients. She wouJd like to prepay for ten tune-
ups to get a discounted rate. Jeremy agrees to a pûœ of $200 per tune up for the bundle. On April 1S Sally pays cash far ffie $2000 prepaid tuneups.
Joumalize the receipt of the prepaid revenue
One of Sally's pros œmee in on April 25 to use one of the prepaid tUneups. Record the journal for compleîing Ïhis work
Wlth the Increase In operations Jeremy has decided to take out some debt to help finance the growlh. Ne has reached out to Valley B8nk and they have
agreed la a bank loan in the amoun! of 5100,000 on April 1. The hems of the loan include a repayment of principal at the eral of S years. The annual
Interest rale on the loan is 8%, recognized monthly.
Joumalize the recelpt of the cash from the ban
Calculate the Interest recognlzed monthly.
Principal (Amount Borrowed) Interest Rate
Period of Time (in months) Monthly Interest Rate
Creale the journal l‹› raCord the ir›leresI for the firsl n onlh a[ Interest
,equipment to perfom repairs on damaged equiprr›ent. Help Jeremy make some
necessary.
lll be hou sad In the backroom of the retail shop. He paid cash for lhe machine
years and that he should be able to sell il al the end for abouE s2500. Complete
at straight line depreciation makes the most sense. Calculate what the annual
hod.
asset is put into service.
epair work for her œmpetitive surf clients. She wouJd like to prepay for ten tune-
r the bundle. On April 1S Sally pays cash far ffie $2000 prepaid tuneups.
Record the journal for compleîing Ïhis work
o help finance the growlh. Ne has reached out to Valley B8nk and they have
e loan include a repayment of principal at the eral of S years. The annual
