1. Please provide journal entries for the following transactions related to Notes Receivable for XYZ Co. The company records an adjusting journal entry for accrued Interest Revenue once a year at 12/31.

2/1 Provided $7,500 of service to A Co. and accepted a 6-month 5% note.

3/1 Loaned Employee T $2,500 and accepted a 3-month 4% note.

6/1 Note from Employee T matured, they honor the note (we collect).

8/1 The note from A Co. matured today, they default.

10/1 Provided $5,000 of service to B Co. (2/10, n/30).

11/1 Accepted 3-month 3% note from B Co. (roll over A/R to N/R).

12/1 Loaned Employee Z $3,000 and accepted a 4-month 6% note.

12/31 Accrue interest revenue from Z, B, and A.

Next Year

2/1 Note from B Co. matures today, they honor the note (we collect).

3/15 Collect from A Co.

4/1 Note from Employee Z matures today, they honor the note (we collect).

2. (A) Please prepare the depreciation schedules for both the Straight-Line and Double Declining Balance methods of depreciation based on the following:

Purchased a machine at a cost of $33,500 on 1/1/1 (first year in business). The machine has an estimated salvage value of $1,500 and an 8-year useful life.

(B) Please provide a side-by-side analysis of the tax impact for the first year of business using both the Straight-line and Double Declining Balance Methods. See information provided in the Excel File Tab # 3 P. 2 (B)