Questions -
Q1. Mulkey-Micro brewery sells cases of beer to local restaurants and pubs. A new restaurant, Primo's Pizzaria, agreed to a sale for $2,500 with payment in thirty days. After thirty days, Primo's did not have the cash for payment; therefore, Primo's offer Mulkey a four-month note with 11.5% interest, all payable at the end of the term of the note. Please record the appropriate journal entry establishing the note on Mulkey's books.
Q2. Adrian's flower show provides floral arrangements for holidays and events. Adrian's sold Oxford City Hall a holiday arrangement for $10,000 on account in November of the amount due within prescribed period. Both parties agreed to satisfy the remaining balance with a ten-month note, at 14% interest, all payable at the end of the note. Please record the appropriate journal entry establishing the note on Adrian's books.
Q3. Calcium Cardboard Supply agreed to accept a four-month, 10% interest rate, $12,000 note from Knox Inc. on April 1, 2008. How much interest will Calcium Cardboard Supply accrue for the month of April?
Q4. Derm Travel Agency accepted a four-month, 9% interest rate, $2,000 note from one of its customers on May 1, 2008. The entire balance is payable at the note's maturity. Prepare the May 31 adjusting journal entry related to this note.
Q5. Linear Lighting accepted a six-month, 8.5% interest, $1,200 note from Kenny Logging Corporation on May 1, 2008. The entire balance is payable at the note's maturity. What will be the total payment on October 31, 2008?
Q6. PSC industry accepted a six-month, 12% interest, $2,000 note from Harlan Hotels on July 1, 2008. The entire balance is payable at the note's maturity. Assume that PSC industries accrues interest on the note monthly. Prepare the December 31 journal entry to record the ultimate payment.
Q7. No Laughing matter comedy club purchased a sound system at the beginning of 2008. The sound system cost 3,000 and is expected to last three year. Assume that the sound system has no salvage value. Calculate the sound system's 2008 depreciation using the double-declining balance method
Q8. Fairfolk Credit Union purchased a video surveillance camera for security purposes at the beginning of 2008. The camera cost $9,000 and is expected to last four years. Assume that the camera has a salvage value of 900. Calculate Fairfolk's 2008 depreciation expense relating to the camera, using the double-declining balance method.
Q9. Beck Bookstore purchased a desk at the beginning of 2006. The desk cost $800 and is expected to last seven years. It expected salvage value is $30. If Beck uses straight-line depreciation, what will the desk's net book value be at the end of 2008?