QUESTION 8 1 that bears interest at an annual rate of 9%, How much will pea on R

Question

QUESTION 8 1 that bears interest at an annual rate of 9%, How much will pea on Randal sin ome Randal Automotivesigned a $5,000 120-day noto payable on tot 317 statement for interest expenses related to this note at O a $150 O b. $4,500 OG$112.50 o d $450 QUESTION9 What is the purpose of recording depreciation? O To reduce the value of the assets on the balance sheet to their fair values To allocate the cost of the assots to the accounting periods in which the assets are used to procuce benefts O- To pay for possible future repairs and eventual replacement of the assets O Toávoldoverstating the book value of the assets

Explanation / Answer

1

Answer:

Interest expenses on the income statement of Randall =$112.5

Explanation to the answer

Interest expanses

=5000 x 9% x 3/12

=$112.5

______________________________________

2

Answer:

B)

allocate the original cost of a asset to the accounting period in which assets are used to produce benefit.

Explanation to the answer:

The main purpose behind the depreciation is to allocate the original cost of a productive asset to expense over its useful life. so expanses of the assets can be spread over its useful life and it is not a technique to determine   fair market value of the asset.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.