FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Nature of Depreciation
Tri-City Ironworks Co. reported $65,500,000 for equipment and $33,415,000 for accumulated depreciation-equipment on its balance sheet.
a. Does this mean that the replacement cost of the equipment is $65,500,000?
b. Does this mean that $33,415,000 is set aside in a special fund for the replacement of the equipment?
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
a. Journalize Bennett Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
1.
2.
b. Journalize Spectrum Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
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