Reference no: EM13720563
1. On January 1, 2001, equipment was purchased for $95,000 cash. The equipment is expected to produce 100,000 units during its useful life and has an estimated salvage value of $15,000. Units produced from 2001 to 2005 were respectively 15000, 18000, 20000, 22000, and 25000.
What is the amount of depreciation expense and Book Value of the assets each year?
2. Pass Journal entries:
• On August 1, 2014, Mohammad, Inc. asked Karam Co. to accept a 90-day, 12% note to replace its existing SAR 10,000 account payable to Karam.
• On May 15, 2014, Max Hardware sold building materials for SAR 8,000 that are subject to a 6% sales tax.
• On May 1, 2014, A-1 Catering received SAR 3,000 in advance for catering a wedding party to take place on July 12, 2014.
• On October 30, 2014, Mohammad, Inc. pays the note plus interest to Karam.
3. What is the difference between long-term liabilities and current liabilities?
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