1. On 1/1/23 Meganco purchased a new lathe for $40,000 installed. The physical life of the lathe is 10 years with a salvage value of $5,000 at the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $10,000. Required: Make the required journal entry on 12/31/23 and 12/31/24 assuming that the lathe is depreciated using 200% double declining balance. DATE ACCOUNT DR CR 2. Kenco is in the software development business. The company wants to purchase a new computer system that has an installed cash price of $25,000. Its current system was purchased 3 years ago for $15,000 and was being depreciated over 5 years using straight line deprecation with an estimated salvage value of $5,000. Required: a. Assume Kenco was able to sell the old computer for $12,500 Make the required journal entry to record the sale. DATE ACCOUNT DR CR b. Assume Kenco was able to sell the old computer for $7,000 Make the required journal entry to record the sale. DATE ACCOUNT DR CR 3. Claireco uses the allowance method to write off all bad debts. On 12/31/23 an aged accounts receivable indicated that bad debt expense would be $35,000. The balance in the Allowance account on that date was a debit of $8,000. It was also estimated that the bad debts expense for the year would be 1% of the years credit sales of $40,000,000. Required: a. Assume that you want to inform the banking industry what your bad debt exposure will be, make the journal entry required on 12/31/23. DATE ACCOUNT DR CR b. Assume that you want to inform the stockholders what your bad debt expense will be, make the required journal entry on 12/31/23. DATE ACCOUNT DR CR 4. Itco uses a perpetual inventory system. During the month of July the following transactions took place: 7/1 Balance: 5,000 uts. @ $6.60/ut 7/8 Purchased: 7,500 uts. @ $7.00/ut 7/12 Purchased: 8,600 uts. @ $7.20/ut 7/18 Sold 15,000 uts. for $12.00 ea. 7/20 Purchased: 7,000 uts. @ $7.60/ut 7/22 Sold 8,000 units for $12.50/ut Required: a. Complete the perpetual inventory record (provided) for the above transactions using FIFO PURCHASED SOLD BALANCE COST TOT DATE UTS b. Make the required journal entry on 7/8. DATE ACCOUNT DR CR c. Make the required journal entry on 7/18. DATE ACCOUNT DR CR UTS COST TOT UTS COST TOT