I. Assume that on November 1, 2015, a company receives a 90 day, 9%, $ 6000 note and that the company prepares financial statements monthly. 1.What is the maturity date of the note?

2.How much interest will be earned on the note if it is paid when due?

3.What is the maturity value of the note?

4.If the companys fiscal year ends on November 31, describe the adjusting entry that would be made, including the amount.

5.How much interest will be earned on this note in 2016?

II. The Smart Computer Company. Companys records for year end of 2015, before adjustments:

2015, $

Cash 110 000

Accounts receivable 850 000

Allowance for doubtful accounts (43 000)

Net sales 2 500 000

In order to estimate the value of Smarts receivables, compute Uncollectible Accounts Expense for 2015, and determine the ending balance of Allowance for Uncollectible Account and Accounts Receivable, Net, under (a) the % of net sales method assuming 1.6 % of net sales to be uncollectible and (b) the accounts receivable aging method, assuming year end uncollectible accounts to be $ 78 000. (c) Compute the receivables turnover and days sales uncollected for 2015, assuming that the prior years net accounts receivable were $720 000.

III. On January 13, 2013, Precision Oil Company purchased a drilling truck for $ 90 000. Precision expects the truck to last five years or 200 000 miles, with and estimated residual value of $ 15 000 at the end of that time. During 2014, the truck is driven 48 000 miles. Precisions year end is December 31. Compute the depreciation for 2014 under each of the following methods: 1) straight-line, 2) production, 3) double-declining methods.

IV. Crescendo Company purchased a computer for $ 1 120. It has an estimated useful life of four years and an estimated residual value of $ 120. Compute the depreciation charge for each of the four years using the double-declining-balance method.

V. Bychowski Company purchased land containing an estimated 10 million tons of ore for a cost of $3 300 000. The land without the ore is estimated to be worth $ 600 000. The company expects that all the usable ore can be mined in 10 years. Buildings costing $ 300 000 with an estimated useful life of 20 years were erected on the site, Equipment costing $ 360 000 with and estimated useful life of 10 years was installed. Because of the remote location, neither the buildings nor the equipment has an estimated residual value. During its first year of operation, the company mined and sold 450 000 tons of ore.

1) Compute the depletion charge per ton.

2) Compute the depletion expense that Bychowski should record for the year.

3) Determine the depreciation expense for the year for the buildings, making it proportional to the depletion.

4) Determine the depreciation expense for the year for the equipment under two alternatives: a) making the expense proportional to the depletion and b) using the straight-line method.

VI. In the past year, Giro Company had net cash flows of $200 000 from operating activities. It expended $75000 for property, plant, and equipment; sold property, land, equipment for $18000; and paid dividends of $ 32 000. Calculate the companys free cash flow

VII. On January 2, the 1st day of business of the current year, Kamila Company sold a car that cost $ 50 500 and on which $ 33 400 of accumulated depreciation had been recorded. For each of the following assumptions, prepare the journal entry for the disposal: 1 ) the car was sold for $ 17 100 cash. 2) the car was sold for $ 14 000 cash. 3) The car was sold for $ 22 000 cash.