On July 1, Caspian Company borrows $80,000 from First Bank on a 6-month, $80,000, 10% note. Instructions (a) Prepare the entry on July 1. (b) Prepare the adjusting entry on July 31. C) Prepare the entry at maturity (January, 1), assuming monthly adjusting entries have been made through December 31. ho (d) What was the total financing cost (interest expense)? Tumnus Company purchased a delivery truck for $40,000 on January 1, 2012. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 14,000 in 2012 and 13,000 in 2013. Instructions (a) Compute depreciation expense for 2012 and 2013 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (b) Assume that Tumnus uses the straight-line method. (1)Prepare the journal entry to record 2012 depreciation. (2)Show how the truck would be reported in the December 31, 2012, balance sheet