Problem 2 (9 points) A piece of equipment costs $20,000 and has a residal (salvage value) of zero. It has a life of 5 years. 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 22 B.) If we sold the piece of equipment at the end of year 2, what would be the journal entry? The selling price is $16,000. Debit Credit Problem 3 (8 points) We sold ABC company merchandise on account for $24,000 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 Problem 4 (9 points) We purchased with a piece of equipment with a cost of $10,000 on a note payable for 90 days. The note is discounted at 5%. 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 5 (9 points) We purchased with a piece of equipment with a cost of $20,000 on a note payable for 90 days. The note is an interesting bearing note at a rate of 5% 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 1 15 points (5 points each) 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 $41,000 Salvage (residual) value is $1,000 Life of the machine in years is 5 years Life of the machine in hours is 100,000 hours A. Calculate Straight line Depreciation Expense for years 1 and 2 (5 points) B. Calculate Double Declining Depreciation Expense for years 1 and 2 (5 points) (5 points) C. Caclulate depreciation Expense using Units of Production for year 1 (20,000 hours were used) and year 2 (30,000 hours were used)