Reference no: EM132565726

Question -

Q1. On May 1, Sofa So Good, Inc., purchased 100 shares of Staco Bell's stock for $8 each. At December 31, year end, the stock was trading for $9 each. Record the adjusting entry based on this stock information.

Q2. On November 1, Sofa So Good, Inc., lent $8,000 on a 3-month, 6% note with interest and principal due at maturity. Calculate the amount of interest in the adjusting entry for the year ended December 31.

Q3. Lawn & Order, Inc., purchased a truck on January 1, Year 1, at a cost of $87,000. The truck has an estimated useful life of 5 years or 107,000 miles. The estimated salvage value is $14,000. In Year 1, the truck was driven 16,000 miles. In Year 2, the truck was driven 20,000 miles. Accumulated Depreciation on the balance sheet using straight-line depreciation at December 31, Year 2, after two years of use, is

Q4. French Confection, Inc., bought machinery at a cost of $54,000 at the beginning of Year 1. If its salvage value is $6,000 and its useful life is 10 years, what will the Depreciation Expense be for the second year if the straight-line method is used?