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Kretz Corporation prepares monthly financial statements and therefore adjusts its accounts at the end of every month. The following information is available for March 2008:a. Kretz Corporation takes out a 90-day, 8%, $15,000 note on March1, 2008 with interest and principal to be paid at maturity.b. The asset account Office Supplies on Hand has a balance of$1,280 on March 1, 2008. During March, Kretz adds $750 to the account for the purchases of the period. A count of the supplies on hand at the end of March indicates a balance of $1,370.c. The company purchased office equipment last year for $62,600.The equipment has an estimated useful life of six years and an estimated salvage value of $5,000.d. The company's plant operates seven days per week with a daily payroll of $950. Wage earners are paid every Sunday. The last day of the month is Saturday, March 31.
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