Question: What would be the journal entry if a piece of equipment costing $10,000 was purchases on a 60 day notes payable discounted at 6%?

A. Debit Equipment $9,900 and Debit Interest expense for $100; Credit NP for $10,000

B. Debit Equipment for $10,000; Credit NP for $10,000

C. Debit Equipment for $10,000 and Debit Interest expense for $100; Credit NP for $10,100

D. Debit Equipment for $10,000; Credit interest expense for $100 and credit Notes Payable for $9,900\

Question: Foster Company warrants its products for one year. A customer received warranty repairs requiring $325 of parts and $120 of labor. The journal entry would be?

A. Debit Product Warranty Payable for $445; Credit Supplies for $325 and Wages Payable for $120.

B. Debit Product Warranty Expense for $445; Credit Supplies for $325 and Wages Payable for $120.

C. Debit Product Warranty Expense for $445; Credit Product Warranty Payable for $445

D. Debit Product Warranty Payable for $445; Credit Product Warranty Expense for $445

Question: When an asset, such as a piece of equipment is sold, what accounts are credited?

A. Gain on Sale of Asset, Accumulated Depreciation

B. Gain on Sale of Asset, Sales

C. Gain on Sale of Asset, Equipment

D. Sales, Equipment

Question: What account(s) should be debited for the sale of an asset at a Loss (such as a piece of equipment)?

A. Loss on sale of asset

B. Loss and sale of asset and accumulated depreciation

C. Loss on sale of asset and equipment

D. Accumulated Depreciation