1.) Journal Entries for Accounts and Notes Payable Lyon Company had the following transactions:

Apr. 8 Issued a 6,000, 60-day, 6 percent note payable in payment of an account with Bennett.

May. 15 Borrowed $40,000 from Lincoln Bank, signing a 60-day note at 9 percent.

June. 7 Paid Bennet Company the principle and interest due on the April 8 note payable.

July. 6 Purchased $14,000 of merchandise from Bolton Company; signed a 90-day note with 10 percent interest.

July. 14 Paid the May 15 note due Lincoln Bank.

Oct. 2 Borrowed $30,000 from Lincoln Bank, signing a 120-day note at 9 percent.

4 Defaulted on the note payable to Bolton Company.

Required

1. Record these transactions in general form.
2. Record any adjusting entries for interest in journal form. Lyon Company has a December 31 year-end.

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2.) Stockholders Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders equity occurred:

Apr. 1 Issued 80,000 shares of common stock at $40 cash per share.

3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their

services in organizing the corporation. The services were valued at $31,000.

8 Issued 3,000 shares of common stock in exchange for equipment with a fair market

value of $55,000.

20 Issued 6,000 shares of preferred stock for cash at $80 per share.

Required

1. Prepare journal entries to record the above transactions.
2. Prepare the stockholders equity section of the balance sheet at April 30. Assume that the next income for April is $60,000.

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3.) Assume Strand Corp purchased a delivery truck on 7/1/17 for $20,000. 10% Salvage Value, 3 yr estimated useful life. Strand is a calendar year-end. For STRAIGHT LINE depreciation method only:

(1) calculate and account for annual depreciation throughout the life of the asset

(2) show the asset's "Net Book Value" at the end of each year throughout the life of the asset