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1-Reading Corp. purchased a new lithographic equip...

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Question

1-Reading Corp. purchased a new lithographic equipment at a cost of $160,000 at the beginning of a fiscal year. The equipment has a straight line depreciation useful life of 8 years and an estimated residual value of $23,000. instructions: Calculate the depreciation for each fiscal year using the declining-balance method at twice the rate of straight line depreciation. 2-The following are selected transactions of Ricks Auto Part. Ricks prepares financial statements semi annually. Jan 1 Purchased merchandise on account from Autocraft, $15,000, terms 1/5, n/eom. Feb 1 Issued a 15%, 6 month, $15,000 note to Autocraft in payment of account. Feb 20 Purchased supplies from Mobil Oil paying $400 in cash and signing a 8%, 2 month, $1,500 note. Apr 20 Paid face value and interest on Mobil Oil note. Jun 1 Accrued interest for 6 months Autocraft note. July 5 Borrowed $30,000 from Bankers Bank by issuing a 4 month, 10% note . Aug 1 Paid face value and interest on Autocraft note. Nov 5 Paid face value and interest on Bankers Bank note. Instructions: Prepare journal entries for the above transactions and events.

 

Paper#11068 | Written in 18-Jul-2015

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