PLEASE ONLY ANSWER 6 D AND 7A. and 5.
Homework Answers
Answer 6.
a) Accumulated depreciation on January 1,2018 = (100000-10000)/5*2 = 36000
b) Depreciation expense = (100000-36000-5000)/6 = 9833
c) Balance in Accumulated depreciation on December 31,2018 = 36000+9833 = 45833
d) Adjusting entry
| Date | account and explanation | Debit | Credit |
| Dec 31,2018 | Depreciation expense | 9833 | |
| Accumulated depreciation | 9833 |
Answer 5.
Statement is true. They have no personal obligation.
Answer 7.
Journal entry
| Date | account and explanation | Debit | Credit |
| Dec 1 | Cash | 1500000 | |
| Notes payable | 1500000 | ||
| Dec 31 | Interest expense (1500000*10%*1/12) | 12500 | |
| Interest payable | 12500 | ||
| Mar 1 | Notes payable | 1500000 | |
| Interest payable | 12500 | ||
| Interest expense | 25000 | ||
| Cash | 1537500 |
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