Question

Indicate the answer choice that best completes the statement or answer the question 1. Which of the following sets of factors is needed to calculate depreciation on plant and equipment? a. the asset's acquisition cost, replacement cost, and its estimated residual value b. the estimated residual value of the asset, its replacement cost, and its market value c. the asset's replacement cost, its estimated life, and its estimated residual value d. the estimated life of the asset, its acquisition cost, and its estimated residual value Eric Cartman Enterprises On October 3, 2018, Eric Cartman Enterprises purchased an Awesome-O 3000 robot from the Kyle Brozlofski Company for $10,000 on credit with payment due in 30 days. On November 20, Cartman requested an extension because of cash flow difficulties. Brozlofski agreed on the condition that Cartman sign a 6-month, 9% note payable. Cartman agreed and signed the note on December 1. 2. Refer to Eric Cartman Enterprises. Cartman's December 1 journal entry would a. debit accounts payable and credit notes payable. b. debit accounts payable and credit cash. c. debit notes payable and interest expense, and credit accounts payable. d. not be appropriate since no transaction has taken place. 3. Refer to Eric Cartman Enterprises. Assuming the fiscal year ends on December 31, an adjusting entry is needed tonercase interest expense by 575. b. interest payable by $225. c.notes payable by S75 d. none of the above. Fabian Woodworks This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. 4. Refer to Fabian Woodworks. If the company uses the double-declining-balance depreciation method, what amount is the depreciation expense for 20207 a $4,800 b. $2,880 c. $1,728 d. $2,000 Caryngh Cergage Learny Posered by Corner

Answer 1

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