A company purchased factory equipment on April 2, 2015 for $160,000. It is estim

Question

A company purchased factory equipment on April 2, 2015 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2015 is $10,500.$14,000. $12-000. $16,000. A corporation has the following account balances: Common stock SI par value. $60,000; Paid-in Capital to Excess of Par. $1,300,000. Based on this information, the number of shares outstanding ore 1.360.000. number of shares issued arc 60.000. average price per share issued is $22.50. A credit is not the normal balance for which account listed below? Revenue account Dividends account Liability account Common stock account If the market interest rate is greater than the contractual interest rate, bonds will sell at face value. at a discount. at a premium. only after the stated interest rate is increased. The best interpretation of the word credit is the increase side of an account. offset side of an account. decrease side of an account. right side of an account. The interest charged on a $70,000,2-month note payable, at the rate of 6%, Would be $4,200 $2,100. $1,050. $700.

Explanation / Answer

Answer 1

=> (160000-20000)/10

=> $14000 ie Option b

Answer 2.

Option c ie no of shares issued isn 60000

Answer 3

Option b ie Dividend Account

Answer 4

Option b, ie Discount

Answer 5

Option d ie Right side of an account.

Answer 6

70000*6%*2/12 => $700

Option d, ie $700

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