On January 1, 2022, a machine with a useful life of five years and a residual value of $2900 was purchased for $20000. Using the

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On January 1, 2022, a machine with a useful life of five years and a residual value of $2900 was purchased for $20000. Using the double diminishing-balance method, the depreciation expense for the year ending December 31, 2023 would be

1. $4104.

2. $6840.

3. $4800.

4. $8000.

Question 2:

Jones’s Used Cars uses the specific identification formula of costing inventory. During March, Jones purchased three cars: a Honda Civic for $7000, a Chevy Malibu for $8500, and a Ford Pinto $8800, respectively. During March, two cars are sold for $11200 each. Jones determines that at March 31, the Ford Pinto is still on hand. What is Jones’s cost of goods sold for March?

1. $15500

2. $18000

3. $8800

4. $17300

Question 3:

Vaughan Inc. lends Ayayai Ltd. $64000 on April 1, accepting a 3-month, 6% interest note. Interest is due the first of each month, commencing May 1. Vaughan Inc. prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?

Note Receivable................... 64000

Cash....................................... 64000

Cash....................................... 320

Interest Income.................... 320

Interest Receivable.............. 960

Interest Income.................... 960

Interest Receivable............... 320

Interest Income..................... 320

Question 4:

The total interest owing on a $10500, 4%, 3-month note receivable is

$105.

$1260.

$210.

$420.

Question 5:

The total interest owing on a $7800, 2%, 2-month note receivable is

$13.

$26.

$7826.

$156.

Question 6:

Oriole Corp. receives a $7300, 4-month, 6% note from Sheridan Corp. in settlement of a past-due account receivable. What entry will Oriole Corp. make upon receiving the note?

Notes Receivable.......................... 7300

Interest Receivable........................ 146

Accounts Receivable.................... 7300

Interest Income............................. 146

Notes Receivable......................... 7446

Accounts Receivable................... 7300

Interest Income............................ 146

Notes Receivable......................... 7300

Accounts Receivable................... 7300

Notes Receivable......................... 7446

Accounts Receivable................... 7446