Reference no: EM133109183

Question 1 - Jake's Mechanics owns the following long-lived assets:

Asset	Date Purchased	Cost	Estimated Useful Life
Building	January 1, 2014	$44,000	20 years
Vehicles	December 31, 2017	28,770	7 years
Equipment	July 1, 2016	15,400	10 years

Prepare depreciation adjusting entries for Jake's Mechanics for the year ended December 31, 2021.

For each asset, calculate its accumulated depreciation and carrying amount at December 31, 2021.

Question 2 - Blackice Coffeeshop began operations April 1. At April 30, the trial balance shows the following balances for selected accounts:

Prepaid Insurance $3,624

Equipment 26,400

Notes Payable 19,200

Unearned Revenue 4,090

Service Revenue 1,580

Analysis reveals the following additional data.

1. Prepaid insurance is the purchase cost of a 2-year insurance policy, effective April 1.

2. Depreciation on the equipment is $530 per month.

3. The note payable is dated April 1. It is a 6-month, 6% note.

4. Services delivered to customers but not recorded at April 30 totalled $1,480.

5. Provided $670 of services to customers who had paid at the beginning of the month.

Prepare the adjusting entries for the month of April.