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Dougan Company purchased equipment on January 1, 2014 for $90,000. It is estimated
that the equipment will have a $5,000 salvage value at the end of its 5-year useful life.
It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Instructions
Answer the following independent questions.
1> Compute the amount of depreciation expense for the year ended December 31, 2014,
using the straight-line method of depreciation.
2> If 16,000 units of product are produced in 2014 and 24,000 units are produced in
2015, what is the book value of the equipment at December 31, 2015? The company
uses the units-of-activity depreciation method.
3> If the company uses the double-declining-balance method of depreciation, what is
the balance of the Accumulated Depreciation'”Equipment account at December 31,
2016?
Answer:
Presented below is information related to Pickett Real Estate Agency.
Instructions
1> Journalize the transactions. (You may omit explanations.)
2> What balance would Pickett Real Estate Agency report for Accounts Payable in its
October 31 financial statements? In which category of which financial statements
would it be found?
3> What balance would Pickett Real Estate Agency report for Accounts Receivable in
its October 31 financial statements? In which category of which financial statements
would it be found?
Answer:
The terms of the bond issue are set forth in a formal legal document called a bond
indenture.
Answer:
Under a periodic inventory system, the acquisition of inventory is charged to the
Purchases account.
Answer:
Rob Honda plans to buy a home and can deposit $15,000 for the purchase today. If the
annual interest rate is 8%, how much can Rob expect to have for a down payment in 5
years?
Answer:
