Question 1Question 1

YearStraight-LineUnits-of-ProductionDouble-Declining Balance1$63,750.00$56,100.00$130,000.00

Straight-Line =260,000-50004 yearsUnits-of-production =Depreciation per unit =260,000-5000500,000$0.51Double-declining balanceStraight-line rate = 25%Double-declining balance rate = 50%

Question 2Question 2Selling Price$40,000.00Carrying ValueAcquisition Cost$90,000.00Accum. Depreciation(47,000.00)43,000.00Loss on Sale$(3,000.00)

Question 3,4, & 5Question 3a.15-SepCash$75,000.00Notes Payable$75,000.0014-NovNotes Payable$75,000.00Interest Expense1,500.00Cash$76,500.00Question 4Cash$484,087.00Discount on Bonds Payable15,913.00Bonds Payable$500,000.00Question 5Bonds Payable$200,000.00Cash$200,000.00

Question 6Question 631-JulRetained Earnings$25,000.00Common Dividends Payable$25,000.0015-AugNo journal entry required on date of record25-AugCommon Dividends Payable$25,000.00Cash$25,000.00

Question 7Question 710-JanCash$816,000.00Common Stock, $5 par value$510,000.00Paid-in Capital in Excess of Par Value,306,000.00Common Stock15-JanEquipment80,000.00Common Stock, $5 par value50,000.00Paid-in Capital in Excess of Par Value,30,000.00Common Stock1-FebOrganization Expenses3,000.00Common Stock, $5 par value2,500.00Paid-in Capital in Excess of Par Value,500.00Common Stock

Question 8Question 8Cash Flows from Operating ActivitiesNet Income$11,300.00Adjustments to reconcile net income to netcash provided by operating activitiesDecrease in Accounts Receivable8,000.00Increase in Inventory(5,900.00)Increase in Accounts Payable4,700.00Decrease in Income Taxes Payable(150.00)Depreciation Expense42,000.00Gain on Sale of Equipment(7,200.00)Net Cash Provided by Operating Activities$52,750.00