Plutos year end is December 31, 2020 and the company records partial depreciation in the year of sale and purchase. On September 1, 2020 Pluto purchased equipment for $550,000. The expected useful life and residual value was estimated at 10 years and $40,000 respectively at the time of purchase. The company paid 120,000 for fitting and testing the equipment and $15000 for a two year insurance policy. Pluto uses the declining balance method by applying double the straight line rate to depreciate the equipment. What is the depreciation expense to be recorded on December 31 2020?

On September 30 2020, Pluto sold an old piece of equipment that was purchased on January 1 2017. The cost of the equipment was $60,000, useful life of 5 years and no residual value. The equipment sold for $12500. Assuming straight line depreciation what is the entry to record the disposal?

On January 1, Pluto issued a $500,000, 8%, 14 year mortgage payable. The terms provide for semi-annual instalment payments of $30,000 on June 30 and December 31 of each year. Prepare a payment schedule for the first 2 instalment payments

Indicate current amount for the mortgage payable at December 31, 2020.