P11-35 accounting for liabilities of a known amount.

This problem continues the Davis consulting situation from problem P10-42 of chapter 10. Davis consulting believes The company will need to borrow $300,000 in order to expand operations. Davis consults the bank and secures a 10%, five-year note on March 1, 2014. Davis must pay the bank principal in five equal installments plus interest annually on March 1.

Requirements

1. Record the $300,000 note parable on March 1, 2014.

2. Record the entry to accrue interest due on the note at December 31, 2014.

3. Record the entry Davis would make to record the payment to the bank on March 1, 2015

iPad * 78%-> P10-42 calculating and journalizing partial year deprearion This problem continues to Davis consulting situation from problem P9-41 of chapter 9. Assume Davis consulting had purchased a computer, $1800, and office furniture, $4200, on December 3 and 4, 2014, respectively, and that they were expected to last five years. Assume that both assets have a residual value of $0 Requirements 1. Calculate the amount of depreciation expense for each cash asset for the year ended December 31, 2014, assuming the computer is depreciated using the straight line method and our office furniture is depreciated using the double-declining balance method 2. Record that entry for the one months depreciation. an-33 bad debes for doubtful debts 15 alowance for f doubtul debt