Open the Excel file attached.

Answerthe questions on the file and save as excel file.

Test 4 -- Chapters 9, 10, and 11 Complete the following and then submit in the drop box. Problem 1 -- Complete this problem on Depreciation Show as much work as possible so that you can receive partial credit incase your answer is wrong Cost of the equipment is $21,000 Salvage (residual) value is 1,000 Life of the machine in years is 4 years Life of the machine in hours is 100,000 hours A. Calculate Straight-line Depreciation Expense for years 1 and 2 B. Calculate Double Declining Depreciation Expense for years 1 and 2 C. Calculate depreciation expense using units of production, 10,000 hours were used in year 1; and 15,000 hours were used in year 2. Problem 2 A piece of equipment costs $10,000 and has a residual (salvage value) of zero. It has a life of 5 years. (use the straight-line method) A.) What is the depreciation Expense for year 1? What is the depreciation Expense for year 2? What is Accumulated depreciation at the end of year 2? B.) If we sold the piece of equipment at the end of year 2, what would be the journal entry? The selling price is $9,000. Debit Credit Problem 3 We purchase a piece of equipment by issuing a $10,000, 90-day note which was discounted at the rate of 6%. A) What is the journal entry for the purchase of the equipment? Debit Credit B) What is the journal entry for the payment of the note payable? Debit Credit Problem 4 We sold ABC company merchandise on account for $12,000 They were unable to pay it so we changed it to a notes receivable for 30 days at 7%. A) What is the journal entry to change the AR to a NR Debit Credit B) What is the journal entry to show receiving the payment for the note receivable and interest? Debit Credit