Question 1

Jerusalem. Co sold merchandize to United. Co on Oct 1, 2016 Co for 18,000 and accepted 4% , 6 months promissory note. On April 1, 2017 United. Co paid in full the amount due to Jerusalem. Co. What are the entries should United .Co record regarding the note?

Question 2

Presented below are selected transactions at Ridge Co:

Jan.1 .2015: Retired a piece of machine that was purchased on Jan.1 .2011 the machine cost $60,000 on that date. It had useful life 5 years with no salvage value.

June .30.2014: Sold computer that was purchased on Jan.1.2011 .the computer cost $45,000.it had a useful life 5 years with no salvage value .the computer was sold for 14,000

Apr.1.2014: Sold Equipment that was purchased on Jan.1.2012 the computer cost $80,000.it had a useful life 8 years with no salvage value the computer was sold for 14,000

Required:

Prepare the journal entries for the above transactions assuming the company uses the straight line method for depreciation expense.