Question
15. An asset was purchased for $107,000.00 on January 1, Year 1 and originally estimated to have a useful life of 8 years with a
15. An asset was purchased for $107,000.00 on January 1, Year 1 and originally estimated to have a useful life of 8 years with a residual value of $12,000.00. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,600.00. Calculate the third-year depreciation expense using the revised amounts and straight line method.
19. Use the adjusted trial balance for Stockton Company below to answer the questions that follow.
Stockton Company | ||
Adjusted Trial Balance | ||
December 31 | ||
Cash | 7,530 | |
Accounts Receivable | 2,100 | |
Prepaid Expenses | 700 | |
Equipment | 13,700 | |
Accumulated Depreciation | 1,100 | |
Accounts Payable | 1,900 | |
Notes Payable | 4,300 | |
Common Stock | 1,000 | |
Retained Earnings | 12,940 | |
Dividends | 790 | |
Fees Earned | 9,250 | |
Wages Expense | 2,500 | |
Rent Expense | 1,960 | |
Utilities Expense | 775 | |
Depreciation Expense | 250 | |
Miscellaneous Expense | 185 | |
Totals | 30,490 | 30,490 |
Determine the retained earnings ending balance.
25.
On the first day of the fiscal year, a company issues a $920,000, 7%, 5-year bond that pays semiannual interest of $32,200 ($920,000 7% 1/2), receiving cash of $884,174.
Required: | |
Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. |
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