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Problem 1: Stear Corp. bought a machine for $75,000 on January 1, 2012. It decided to depreciate it using the Straight-Line Method of 5%. Stear Corp. maintains an accounting period of January to December. What is the amount in the Accumulated Depreciation on December 31, 2012 and on December 31, 2013?
The accumulated Depreciation Account on December 31 2012 shows $71,250$3,750$7,500 on its credit and $7,500$15,000$60,000 on December 31 2013.
Problem 2: What is the difference between a journal and ledger?
1.Fizer Pharmaceutical paid $68 million on January 2, 2013, for 4 million shares of Carne Cosmetics common stock.
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