Accounting Help?

  For Three Months

Ended December 31, 2017 For Three Months

Ended March 31, 2018

Office equipment $ 8,200 $ 8,200  

Accumulated depreciation—Office equipment 410 820  

Computer equipment 12,000 12,000  

Accumulated depreciation—Computer equipment 750 1,500  

Total revenue 31,584 45,300  

Total assets 83,460 121,368  

1.) Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2018. Compute amounts for the year ended December 31, 2018, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).

2.) Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2018?

3.) Compute the three-month total asset turnover for Business Solutions as of March 31, 2018. (Round your answer to 2 decimal places.)

1 Answer

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  • Don G
    Lv 7
    3 weeks ago

    Since straight-line depreciation is used, the answer is obvious. Check your text again.

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