On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8)

If the company used double declining balance method for depreciation, how much depreciation expense would be recorded in the first year?

Question 7 options:

$57,600

$60,400

$40,300

$55,430

On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8)

If the company sells the machine at the end of 5 years and receives $11,000, the journal entry to record the sale will include which of the following?

Question 8 options:

Debit to Accumulated Depreciation for $138,000

Credit to Machine for $138,000

Debit to Loss on Sale for $500

Credit to Gain for $500

Employers withhold which of the following from employee's paychecks

Question 16 options:

LFRA

FICA

Unemployment Tax

All of the Above

On October 1, your company borrows $200,000 in order to build a new factory. The loan is for 10 years, at 7% interest, and semiannual interest payments are due each April and October. The journal entry to record the issuance of the promissory note should:

Question 20 options:

debit Notes Payable for $200,000, debit Interest Expense for $14,000, credit Cash for $200,000, and credit Interest Payable for $14,000

debit Accrued Interest for $14,000 and credit Cash for $14,000

debit Cash for $200,000 and credit Notes Payable for $200,000

debit Cash for $200,000, debit Interest Expense for $14,000, credit Notes Payable for $200,000, and credit Interest Payable $14,000.

Which of the following are generally recorded as liabilities on the balance sheet?

Question 24 options:

	Remote likelihood liabilities.
	Possible contingent liabilities.
	Probable contingent liabilities.
	Immaterial contingent liabilities