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3) a) Determine the amount of the salvage value assumed for the heating equipment. b) Determine the gain or loss on the sale of the
3) a) Determine the amount of the salvage value assumed for the heating equipment. b) Determine the gain or loss on the sale of the equipment if the equipment sold for $22,500 on 10/1/X9. 4) Determine the balance in the accounts payable account at 1/1/x5. 5) a) Prepare the appropriate adjusting entry at 12/31/x5. b) If the company policy was to prepare reversing entries, would this adjusting entry be reversed? 6) a) Prepare the appropriate adjusting entry at 12/31/x5. b) If the company policy was to prepare reversing entries, would this adjusting entry be reversed? c) Determine the balance in Rent Revenue as of 12/31/x5. 3) The company purchased new heating equipment, applying the straight-line method of depreciation: Initial purchase price: $ 80,000 Date of acquisition: 7/1/X3 Estimated useful life: Unadjusted balance in accumulated depreciation account at 12/31/xS: $ 9,000 12 years 4) Accounts payable are owed to suppliers of cleaning materials for the building. Materials expense for the year: $ 23,000 The 1/1/x5 balance in accounts payable: ? The 12/31/x5 balance in accounts payable: $ 1,750 Cash paid during the year for supplies: $ 24,500 5) Two notes payable exist at year-end. For notes with terms exceeding one year, interest is payable annually, on the anniversary date of the note (e.g., the interest for the first year for note payable A is due on 4/1/XS, etc.) For notes with terms less than one year, full interest is paid when the note is due. Note payable A-dated: 4/1/X4 Principal: $ 18,000 Term of note: 3 years Stated interest rate: 4% Note Payable B. dated: Principal: Term of note: Stated interest rate: 9/1/5 $ 30,000 9 months 5% 6) Rent collected during the year is credited to the Rent Revenue account. The total collecte during the year 20x5: $ 450,000 It was determined that three tenants had paid rent in advance, as follows: Tenant A: Total amount paid: $ 42,000 Term 5 months Date paid: 10/1/x5 Tenant B: Total amount paid: Term Date paid: $ 54,000 3 months 11/1/x5 Tenant C: Total amount paid: Term Nate naid: $ 38,000 4 months 12/1/x5
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