1.

Sunland Marina has a September 30 year end. On August 1, 2021, it purchased a new marine crane to assist it with the autumn pull out of the boats in the marina. The physical life of the crane is expected to be 15 years, but Sunland plans to keep the crane for only 10 years as this represents the assets useful life to the company and at which point they will trade it in for a newer model. The original cost of the crane is $51600. The amount of depreciation that Sunland should show in its financial statements for the year ended September 30, 2021 is

$3440.

$860.

$5160.

$573.

2. Which of the following statements is prepared from the unadjusted trial balance?

Balance Sheet

Statement of Owners Equity

None of the above

Income Statement

3.Vaughn Company received a $360 cheque from a customer for the balance due on an accounts receivable. The transaction was erroneously recorded as a debit to Cash of $630 and a credit to Service Revenue of $630. The correcting entry is

a. debit Accounts Receivable $360; credit Cash $360

b.debit Service Revenue $630; credit Cash $270; credit Accounts Receivable $360

c.debit Service Revenue $630; credit Cash $360; credit Accounts Receivable $270

d. debit Accounts Receivable $270; credit Cash $270

4.Which of the following would NOT be classified a non-current liability?

lease liabilities

mortgage payable

current maturities of long-term debt

bonds payable