1. On January 1, 2019, ABC Company acquired equipment costing $50,000 for cash $10,000 and signing a note payable for $40,000. What is the journal entry to record the purchase of the equipment? Account Debit Credit Answer here Answer here Answer here 2. Assume the asset referred to in #1 above has a useful life of 10 years. If you use the straight-line method of depreciation what is the journal entry to record the depreciation for the first year (2019)? Account Debit Credit Answer here Answer here 3. Which of the following basis of accounting is acceptable for GAAP? a) accrual basis b) cash basis c) both a) and b) d) neither a) nor b) 4. What type of account is accumulated depreciation? a) Asset b) Liability c) Equity d) Contra Answer here 5. On July 1, 2019, the company pays $12,000 for a prepaid insurance policy that is for the period beginning July 1, 2019 to June 30, 2020. The company reports on a calendar year. What would be the entry on July 1, 2019 to record payment for the insurance policy? Account Debit Credit Answer here Answer here 6. On July 1, 2019, the company pays $12,000 for a prepaid insurance policy that is for the period beginning July 1, 2019 to June 30, 2020. The company reports on a calendar year. What would be the entry on December 31, 2019 to record the insurance expense? Account Debit Credit Answer here Answer here