1) A $100,000 truck was depreciated using straight-line and assuming a 5-year life and $10,000 salvage value. After 3 years of depreciation was recorded, it was sold for $40,000 cash (on the 1st day of the 4th year).

assets=

liabilities=

shareholders equity=

choices are:

A. Debit Gain (Loss) on Sale of Equipment6,000;CreditDepreciation Expense 54,000

B. DebitCash40,000;Credit Equipment 40,000

C. Credit Gain (Loss) on Sale of Equipment 60,000

D. 0 No effect

E. Debit Gain (Loss) on Sale of Equipment 6,000

F. Credit Gain (Loss) on Sale of Equipment 6,000

G. DebitGain (Loss) on Sale of Equipment 14,000

H. DebitCash40,000;DebitAccumulated Depreciation54,000;CreditEquipment100,000

2.

Lawn & Order, Inc., purchased a truck on January 1, Year 1, at a cost of $91,000. The truck has an estimated useful life of 5 years or 113,000 miles. The estimated salvage value is $29,000. In Year 1, the truck was driven 16,000 miles. In Year 2, the truck was driven 20,000 miles. Accumulated Depreciation on the balance sheet using straight-line depreciation at December 31, Year 2, after two years of use, is (rounded to the nearest dollar) Round to the nearest dollar and do not use $ or negative signs in your answer.On September 1, Sea the World Cruises, Inc., lent $5,000 on a 7-month, 9% note with interest and principal due at maturity. Calculate the amount of interest in the adjusting entry for the year ended December 31. DO NOT INCLUDE $ SIGNS IN YOUR ANSWER. ROUND YOUR ANSWER TO THE NEAREST WHOLE DOLLAR