Question 1:
Required: Prepare XYX. general journal entries for the following transactions:
Jan. 1 Accepted Bravo Company 4 month, 10% note, as settlement of an outstanding $15,000 account receivable for goods sold last year
Jan. 15 Purchased $10,000 Equipment from Charlie Company, signing a 9 month, 12% note
Jan. 25 Loaned Delta Co. $30,000 cash, accepting a 3 month, 10% note
Jan. 31 Prepared accrual adjusting entry for any interest revenue
Apr. 25 Received payment in full from Delta Co. for outstanding note & interest
May 1 Received payment in full from Bravo Co. for outstanding note & interest
Oct. 15 Paid Charlie in full
Question 2: Alpha Company purchased a refrigerated delivery truck for $65,000 on April 1, 2016. The plan is to use the truck for 5 years and then replace it. At the end of its useful life the truck is expected to have a salvage value of $10,000.
a. Prepare the depreciation table for Alpha's truck assuming that the company uses the straight-line method for depreciation.
b. Prepare the depreciation table for Alpha's truck assuming that the company uses the double-declining-balance depreciation method.
c. Compute the depreciation expense for 2016 for Alpha's truck assuming the truck has an expected life of 200,000 miles and during 2016 the truck was driven 24,540 miles. Round your depreciation expense per mile to three decimal places.