Followings are selected transactions for Mona Enterprise for 2020:

Jan1Received $2,500 scrap value on retirement of machinery that was purchased on January 1, 2008. The machine cost $85,000 on that date and had an estimated useful life of 9 years with no residual value.

April 30 Sold a printing machine for $55,000 that was purchased on January 1, 2015. The printer cost $90,000 and had an estimated useful life of 10 years with no residual value.

Dec 31Disposed of a business automobile that was purchased on September 1, 2014. The car cost $24,800 and was depreciated on an 8-year useful life with a residual value of $800.

Instructions

Journalize all entries required as a result of the above transactions. Mona Enterprise uses the straight-line method of depreciation and has recorded depreciation up to December 31, 2019.

Followings are selected transactions for Mona Enterprise for 2020:

Jan1Received $2,500 scrap value on retirement of machinery that was purchased on January 1, 2008. The machine cost $85,000 on that date and had an estimated useful life of 9 years with no residual value.

April 30 Sold a printing machine for $55,000 that was purchased on January 1, 2015. The printer cost $90,000 and had an estimated useful life of 10 years with no residual value.

Dec 31Disposed of a business automobile that was purchased on September 1, 2014. The car cost $24,800 and was depreciated on an 8-year useful life with a residual value of $800.

Instructions

Journalize all entries required as a result of the above transactions. Mona Enterprise uses the straight-line method of depreciation and has recorded depreciation up to December 31, 2019.

Blue Properties Co. paid $6,000 for property taxes in year 2018 calendar year. In 2019, Blue receives its property tax bill on May 1 for $7,200 which is payable on June 30, 2019.

Instructions

Calculate the prepaid or property taxes payable that Blue will report on its balance sheet if Blue Properties Co. year end is

a)February 28, 2019

b)May 31, 2019

c)September 30, 2019

d)December 31, 2019

The shareholders' equity section of Simpson Limited at December 31, 2018 included the following:

$4 preferred shares, cumulative,

20,000 shares authorized; 5,000 shares issued.................................................. $500,000

Common shares, 300,000 shares authorized,

100,000 shares issued......................................................................................... $1,000,000

Dividends were not declared on the preferred shares and are in arrears since 2016.

On September 15, 2019, the board of directors of Simpson Limited declared dividends on the preferred shares for 2016, 2017, and 2018, to shareholders of record on October 1, 2019, payable on October 15, 2019.

On November 1, 2019, the board of directors declared a $1.50 per share dividend on the common shares, payable November 30, 2019, to shareholders of record on November 15, 2019.

Instructions

Prepare the journal entries that should be made by Simpson Limited in 2019 on the dates indicated below:

September 15November 1

October 1November 15

October 15November 30