Room: 002 -AM
\$?????: Financial Accounting II
Prepare Joumal Enties to record Z Com's transaction d : (4pts)
a. Sold \( \$ 420,800 \) of merchandise on credit
b. Wrote off \( \$ 2,500 \) of uncollectible account receivable
c. Received 238,000 cash in payment of account receivable
d. In adjusting the account on Dec 31 , the company estimated that \( 1 \% \) of account receivable will be uncollectible.
Fee company purchase a machine in its factory at January 2 at a cost of \( \$ 52,200 \). The machine's useful life is estimate at 10 years, or 360,000 units of product, with a salvage value \( \$ 5,000 \). During the second year the machine produced 30,000 units of product.
Determine the machine's second year depreciation under the (3pts)
a. Straight-line method
b. Units of production
c. Double declining balance method
AB Co. disposes of a machine costing \( \$ 50,000 \) with accumulated depreciation of \( \$ 32,800 \). Prepare the journal entries to record the disposal under each following separate assumptions: \( (3 p t s) \)
a. Machine is sold for \( \$ 10,000 \) cash.
b. Machine is traded in a similar but newer machine having a cost \( \$ 54,500 \). A \( \$ 15,000 \) trade in allowance is received is received, and the balance is paid in cash.
Joo Co. borrows \( \$ 250,000 \) cash on December 5,2007 , by signing a 90 days, \( 9 \% \) note . (10pts)
a. On what date does this note mature?
. How much interest expense result from this note in 2007 and 2008 ?
2. Journal Entries (1) Issuance of note, (2) Accrual interest on 2007, (3) Payment of note at maturity
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