Question Content Area

1. On June 8, Williams Company issued an $71,019, 11%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? When required, round your answer to the nearest dollar.

a. $7,812

b. $73,623

c. $78,831

d. $71,019

2. Equipment with a cost of $148,140 has an estimated residual value of $8,990 and an estimated life of 4 years or 14,018 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,130 hours?

a. $34,787.50

b. $4.00

c. $44.46

d. $31,070.02