QUESTION 1 On November 1. Orpheum Company accepted a $10,000, 90-day. 89 note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note? Debit Note Receivable $10,200: credit Accounts Receivable $10,000; credit Interest Revenue $200. Debit Note Receivable $10,000; credit Cash $10,000. Debit Sales $10,000; credit Accounts Receivable $10,000. Debit Note Receivable $10,000 credit Accounts Receivable $10,000. Debit Note Receivable $10,000: credit Sales $10,000. QUESTION 2 Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 3% charge on sales for using Its card. On June 28, Jervis had $3,500 in NB Card credit sales. What entry should Jervis make on June 28 to record the deposit? Debit Accounts Receivable $3,395, debit Credit Card Expense $105; credit Sales $3,500 Debit Cash $3.500: Credit Sales $3.500 Debit Cash $3,605; credit Credit Card Expense $105; credit Sales $3,500 Debit Cash $3,395; debit Credit Card Expense $105; credit Sales $3.500 Debit Accounts Receivable $3.500; credit Sales $3,500 QUESTION 3 Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87.000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. What journal entry would be needed to record the machines second year depreciation under the units-of-production method? Debit Amortization Expense $16,900; credit Accumulated Amortization $16,900. Debit Depreciation Expense $16,900; credit Accumulated Depreciation $16,900. Debit Depletion Expense $16,000; credit Accumulated Depletion $16,000. Debit Depletion Expense $16,900: credit Accumulated Depletion $16,900. Debit Depreciation Expense $16,000; credit Accumulated Depreciation $16,000. QUESTION 4 Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value. The machine's book value at the end of year 3 is: $52,500. $7,500. $6,875. $30,000. $45,000. QUESTIONS Great Falls Co.'s bank reconciliation as of February 28 is shown below. 38,1 Bank balance Book balance + Deposit in transit Note collection +74 5 37.6 43 2,95 0 -1.7 30 s 38,8 63 Check printing -35 - Outstanding checks Adjusted bank balance Adjusted book balance $ 38,8 63 One of the adjusting journal entries that Great Falls must record as a result of the bank reconciliation includes: Debit Cash $2.950: credit Accounts Receivable $2,950. Debit Miscellaneous Expense $35; credit Accounts Payable $35. Debit Cash $745; credit Note Receivable $745. Debit Note Payable $745; Credit Cash $745. Debit Cash $2.950: credit Sales $2,950
