Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

wont forget to like ur answers On January 1, 2019, Royce Company purchased a building for $165,000, its salvage value is $15,000 and its estimated

wont forget to like ur answers
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2019, Royce Company purchased a building for $165,000, its salvage value is $15,000 and its estimated useful life is 5 years. Company uses the double declining balance method of depreciation and prepares its financial statements yearly at year end. On January 1, 2019, the acquisition entry of the building will include a: Debit Depreciation Expense $66,000 Credit Accumulated Depreciation $66,000 Debit Building $165,000 Debit Cash $165,000 None of the above Book Value (year start) on January 1, 2020 is: $99,000 $165,000 $59,400 $150,000 None of the above On June 1, 2021, Dawn Company borrows $150,000 from NBS Bank and sign an 3 months, 12% interest-bearing note. On September 1, 2021 Dawn Company honors the note by paying the full amount due. Dawn Company prepares its financial statements quarterly. Interest accrued amount on June 30, 2021 is: $3,000 $4,500 $1,500 $6,000 None of the above Interest expense amount on September 1. 2021 is: $3,000 $4,500 $1,500 $6,000 O None of the above $3,000 $4,500 $1,500 $6,000 None of the above Total amount due September 1, 2021 is: $154,500 $150,000 $151,500 $153,000 None of the above On September 1, 2021, the payment entry will include a: * Debit Cash $150,000 Credit Interest Expense $3,000 Debit Notes Payable $150,000 Credit Interest Payable $1,500 None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Cost Accounting

Authors: Edward J. Vanderbeck

16th edition

9781133712701, 1133187862, 1133712703, 978-1133187868

More Books

Students also viewed these Accounting questions