A company sold a tractor that originally cost $134,000 for $29,000 cash. The accumulated depreciation on the tractor was $68,100. The company should recognize:

Multiple Choice

• A loss of $36,900.

• A gain of $36,900.

• A loss of $65,900.

• A gain of $65,900.

• A gain of $29,000.

On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $54,000. Alan made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made? (Use 360 days a year.)

Multiple Choice

• Debit Notes Payable $54,000; debit Interest Expense $1,620; credit Cash $55,620.

• Debit Notes Payable $54,000; debit Interest Payable $810; debit Interest Expense $810; credit Cash $55,620.

• Debit Cash $54,810; credit Notes Payable $54,810.

• Debit Notes Payable $54,000; debit Interest Payable $810; credit Cash $54,810.

• Debit Notes Payable $55,620; credit Interest Payable $810; credit Interest Expense $810; credit Cash $54,000.