1) Directions:Prepare the journal entry based on the information below.

Background Information: Donald sold equipment for $2,500 which cost $10,000 The equipment has accumulated depreciation of $7,000

15-Dec XXXX XXXX

XXXX XXXX

XXXX

XXXX

2) Directions:Prepare the journal entry based on the information below.

Background Information: Donald sold equipment for $7,500 which cost $9,500 The equipment has accumulated depreciation of $5,500

15-Dec XXXX XXXX

XXXX XXXX

XXXX

XXXX

3) Directions:Prepare journal entries based on the following information

a) Record the purchase of $100,000 bond, 8%, 5-year bond at par value with interest paid semiannually

Date Account Debit Credit

Issue XXXX XXXX XXXX

XXXX XXXX XXXX

b) Record receipt of an interest payment recorded a 6% fee

Date Account Debit Credit

Interest XXXX XXXX XXXX

XXXX XXXX XXXX

c) Record redemption of bond at maturity

Date Account Debit Credit

Maturity XXXX XXXX XXXX

XXXX XXXX XXXX

4) Directions: Complete the chart below based on the background information

Background information: Anna Corporation borrowed $85,000 from the bank on October 1,2018.The note had an 7% annual rate of interest and matured on March 31,2019.Interest and principal were paid in cash on the date on the maturity date.

a) What amount of cash did Anna pay for interest in 2018

b) What amount of interest expense was recognized on the 2018 income statement

c) What amount of total liabilities was reported on the December 31,2018 balance sheet?

d) What total amount of cash was paid to the bank on March 31,2019 for principal and interest?

e) What amount of interest expense was reported on the 2019 income statement?

a) Interest Expense Paid XXXX

b) Interest Expense XXXX

c) Total Liabilities XXXX (Hint:This will be the bond amount and Interest Expense for 3 months)

d) Amount of Cash XXXX

e) Interest Expense XXXX

5) Directions:Determine the amount to be capitalized in the asset account for the purchase of the truck

Background Information: Donald purchased a moving truck to move Micky to Alaska.The truck had a list price of $150,000.Donald was able to negotiate a 3.25% because he was able to pay cash for the purchase The truck needed shipped and the freight cost were $3,000.The specialist fee for the transaction was $1,800.Donald is paying someone $45,000 to load the truck and move Mickey.He also purchased a $10,000 insurance policy.The truck has an expected life of 6 years with a salvage value of $8,000

Costs that are to be capitalized:

List Price XXXX

Less: Discount XXXX

Freight Cost XXXX

Specialist Fee XXXX

Total Costs XXXX

6) Directions: Complete the accounting equation and questions below with the information provided

Background Information:

1 The company started when it acquired $55,000 cash issuing common stock

2 Purchased a new industrial oven that cost $35,000 cash

3 Earned $75,000 in cash revenue

4 Paid $30,000 cash for salaries Expense

5 Adjustment for use of industrial oven. Purchased on January 2,1018 with a useful life of 4 years and salvage value of $4,000

Straight-line Depreciation was used of the entry on December 31,2018

a) Compete the accounting equation

Goofy Company

Accounting Equation

Balance Sheet Income Statement

Event Assets Accumulated Stockholders Equity

Cash + Equipment -Depreciation = Common Stock + Retained Earnings Revenue - Expense = Net Income

1 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

2 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

3 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

4 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

5 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Total $- + $- - $- = $- + $- $- - $- = $-

b) What amount of depreciation expense should be reported on the 2018 income statement? XXXXX

c) What amount of accumulated depreciation expense should be reported on the 2019 income statement? XXXXX