1- The cost of an asset is 1,200,000 and its residual value is 250,000. Estimated useful life of the asset is 5 years. Calculate depreciation for the first year using the double-declining balance method of depreciation.

a.384,000

b. 476,000

c.480,000

d.292,000

2- SMJ Services sells travel insurance policies. The price for each policy is $100 and is paid in advance. During April of the current year, 10 travel insurance policies were sold for cash. The journal entry would be:

a. Unearned revenue1,000

Service revenue1,000

b. Cash1,000

Service revenue1,000

c. Cash1,000

Unearned revenue1,000

d. Unearned revenue1,000

Cash1,000