7. On January 1, 2020 Gulf Boat Tours Inc. installed a wharf for a cost of $2,000,000. Gulf Boat Tours Inc. expects the wharf to remain useful for 15 years and have a residual value of $500,000. Using the Straight Line method, calculate the depreciation expense for 2023 and the accumulated depreciation at the end of 2023. (6 points) Item Optional Calculations: Answer (2,000,000-500,000)/15 = 100,000 Acc Depr: 100,000 +100,000+100,000 +100,000 -400,000 Depreciation 400,000 Expense 2023: E Accumulated 400,000 Depreciation End of 2023: 6. On Oct 1, 2020, Ocean Side Art Gallery signed a 9 month note payable in the amount of $450,000 in order to purchase a building. The note payable accrues interest at 3% interest. Prepare the Ocean Side Art Gallery journal entry for the adjusting entry to accrue 3 months interest on December 31, 2020 AND also journalize the entry to pay off the note and any interest owed on June 30, 2021. (6 points) Date Accounts DR CR 12/31/20 6/30/21 5. On January 1, 2020, Captain Will's Tug Boats purchased a boat storage building for $500,000. They expect to use the boat storage building over the next 5 years. The estimated residual value of the boat storage building is $100,000. Complete the following depreciation schedule using the double declining balance method of depreciation. (14 points) Book Value Year 1/1/2020 Book value $500,000 Depreciation Expense Rate Accumulated Depreciation $500,000 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 4. On January 1, 2019, Blue Heron Manufacturing purchased equipment for making fishing lures for $250,000 and expected to keep it for 3 years. The estimated residual value of the equipment at the end of the 3rd year is $10,000. Blue Heron Manufacturing expects to use the equipment to make 600,000 fishing lures over the next three years. Blue Heron Manufacturing plans to use the equipment to make 200,000 fishing lures in 2019, 250,000 fishing lures in 2020, and 150,000 fishing lures in 2021. Calculate depreciation expense for 2019 if Blue Heron Manufacturing uses the units-of-production method of depreciation. (6 points) Answer Item Optional Calculations: Depreciation Expense 2019: 3. On April 15, 2020, Islander Realty purchases 4,000 shares of stock for $30 per share. These shares are an Equity Investment. On November 15, 2020 Islander Realty sells the stocks for $35 per share. Journalize the purchase of the shares on April 15 AND the sale of the shares on Nov. 15. (6 points) Accounts DR CR Date 4/15/20 11/15/20