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Accounting 1A Exam 4 Review Problems Calculate depreciation under all three methods using the following information: Asset Cost: $100,000 Residual Value: $10,000 Useful Life: 5 years Total Operating Hours: 50,000 hours Hours the asset was used in each of the four years: year 1 15,000 hours year 2 12,000 hours year 3 10,000 hours year 4 3,000 hours year 5 10,000 hours Depreciation Expense Units of Production Double Year Straight-line Method Method Declining Balance Method 3 4 Total A machine on the ledger of Mitchell Co. was booked at an original cost of $250,000. Accumulated depreciation on the machine at December 31 was $140,000.The asset disposal/sale took place 3 months into the new year on March 31. Journalize the entry to record $10,000 of depreciation for the three months up to the assets removal from the books on March 31. Date Description Post Debit Credit 2 2 If the machine were dumped as worthless on March 31, the entry to record the disposal would be: Date Description Post Debit Credit 1 2 2 3 4 Page 1Accounting 1A Exam 4 Review Problems If the machine were sold for $120,000 cash on March 31, the entry to record the disposal would be: Date Description Post Debit Credit 2 13 4 5 Juno Co. issues a 90 day note for $100,000 to Thor Co. for merchandise inventory. The note is DISCOUNTED at 8%. The DISCOUNT amount of the note and PROCEEDS of the note would be: June's entry to record the issuance of the note would be: Date Description Post Debit Credit 2 2 3 June's entry to record the payment of the note at maturity would be: Date Description Post Debit Credit 2 2 3 Thor's entry to record the receipt of the note would be: Date Description Post Debit Credit 2 3 Thor's entry to record the receipt of the payment of the note at maturity would be: Date Description Post Debit Credit 2 3 Page 2