8. A magazine sold 100 yearly subscriptions valued at $120 per year.

a) Record the journal entry to receive cash.

b) Record the adjusting journal entry to record one month of the subscription being delivered.

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9. Calculate the depreciation for the following scenarios. Bought a piece of equipment costing $30,000, with a salvage value of $10,000.

a) Figure the SL depreciation for year one and year two. Assuming a 10 year useful life.

b) Figure the units of production (activity) depreciation. Assuming that total units will be 100,000.

Year 1 20,000 units

Year 2 - 30,000 units

c)Figure the double declining balance depreciation for year one and year two. Assuming a 4 year life.

d) Figure the SL depreciation; assuming a 10 year life; if the equipment was purchased on July 1^st.

e) Prepare the Journal Entry for a (SL Depreciation)

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10. Bought a piece of equipment costing $110,000, with a salvage value of $10,000 and a useful life of 10 years. After 5 years, it was discovered that the salvage value will be $5,000 and the remaining useful life is only 2 years. What is the new depreciation using SL method?

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11.A piece of equipment costing $22,000 with an accumulated depreciation of $10,000 was sold.

Prepare the necessary journal entries for the following:

a) Sold for $15,000 cash

b) Sold for $10,000 cash

c) Sold for $12,000 cash

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12.Use the following key (a-d) to identify proper treatment of each contingent liability (Might not use them all - May repeat)

1. Record only
2. Record and Disclose
3. Disclose only
4. Do not record or disclose

1. ____Event is probable and is estimable
2. ____Event is probable by is not estimable
3. ____Event is reasonably possible
4. ____Event is remote

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13. Prepare the following Journal entries for Bond Issuance

March 1 -- Issued $400,000 in bonds at face value.

June 3 -- Issued $100,000 in bonds for 98.

October 30 -- Issued $200,000 in bonds for 101.