1. On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90 day note. Which of the following is the correct journal entry to record the payment of the note on the maturity date?

2. A company had the following plant asset:

New equipment cost $64,000

Salvage value 4,000 Useful life 5 years

The machine is also expensed to produce 150,000 units during its useful life.

Compute the depreciation expense for the year using the units of production method of depreciation assuming that 25,000 units were produced in year one.