Question

Q1. Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000. Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using: 1- Straight-line Method. 2- Units of Production Method if the machine produces 100,000 units. Here is a table of units produced each year: First 23,000 Second 25,000 Third - Fourth 30,000 Fifth 22,000 3- Double Declining Balance Method (2 Marks). Q2- On June 1, 2019, ABC Company signed a $25,000, 120-day, 6% note payable to cover a past due account payable. a. What is the total amount of interest to be paid on this note? b. Prepare ABC Company's general journal entry to record the issuance of the note payable c. Prepare ABC Company's general journal entry to record the payment of the note on September 29, 2019 (2 marks). Q3. What are the characteristics of corporations (1 mark).

looking for Q3

Q3. What are the characteristics of corporations (1 mark).

Answer 1

Corporation is legal entity which is separate from its owners.,

#treated it as person (artificial person, in terms of accounting) having rights and obligations as well.

Characteristics of corporation described as follows

-Limited liability:: shareholders liability is limited to the extent of their share capital in that corporation.

-ownership:: separate legal entity entitled that company is deferent from their owner.

- professional management :: under which there is no need to active participation of investors. Various professionals are operated in behalf of them.

-life span:: perpetual success has been followed. It is everlasting process.

-capital acquisition:: easily procure funds by way of issuing capital and bonds.

-double taxation:: can be avoided

-Dividends:: return on capital invested by them, shouod pay.

-other government regulations.

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