1) On October 1, 2014 Widget Company purchased new equipment for cash. Costs were as follows: List price $45,500 Sales Tax 3,935 Freight charges 950 Installation 2,700 Repairs due to improper installation 895 Record the above in General Journal form.

2) Equipment is purchased on March 1, 2014 for $200,000. The asset is expected to have a salvage value of $20,000 and a life of 10 years. Calculate the depreciation for 2014 & 2015 using the following methods: a. The straight- line method: b. The double declining-balance method:

3) On July 1, 2014 Teresa Smith & Robert Jones formed a partnership. Teresa invested $75,000 cash, while Robert invested $65,000 cash and $10,000 in equipment. Record each partners investment in general journal form.

4) Michelle Web invests $300,000 and Anthony Capp invests $100,000 in their partnership. The partnership earns a net income of $100,000 this year. Calculate the distribution share to each partner if profits are divided in the ratio of: a. Investments b. 4:1