m10 points) Ermier Company purchased a machine at a cost of $80,000. The machine is expected...

  

Transcribed Image Text:

m10 points) Ermier Company purchased a machine at a cost of $80,000. The machine is expected to have a $5,000 salvage value at the end of its 5-year useful life. Instructions Compute annual depreciation for the first and second years using the straight-line method. (a) (b) double-declining-balance method. Problem 9 (10 points) Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, the equipment was sold for $40,000. Prepare all necessary journal entries related to the equipment in the books of Brown Company on March 31, 2015. Proben 3 (20) On January 1, 2015, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective interest rate of 8% interest is paid semiannually on June 30 and December 31. The company uses the effective-interest method of amortization. Required Prepare the joumal entries that Plank Corporation would make on January 1, June 30, and December 31, 2015, related to the bond issue Problem 4 (10 points) Darling Corporation issued 200,000 shares of $20 par value, cumulative, 5% preferred stock on Janua 2013, for $4,500,000. In December 2015, Darling declared its first dividend of $800,000. Instructions (a) If the preferred stock is not cumulative, how much of the $800,000 would be paid to co stockholders? (b) If the preferred stock is cumulative, how much of the $800,000 would be paid to common stockhol m10 points) Ermier Company purchased a machine at a cost of $80,000. The machine is expected to have a $5,000 salvage value at the end of its 5-year useful life. Instructions Compute annual depreciation for the first and second years using the straight-line method. (a) (b) double-declining-balance method. Problem 9 (10 points) Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, the equipment was sold for $40,000. Prepare all necessary journal entries related to the equipment in the books of Brown Company on March 31, 2015. Proben 3 (20) On January 1, 2015, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective interest rate of 8% interest is paid semiannually on June 30 and December 31. The company uses the effective-interest method of amortization. Required Prepare the joumal entries that Plank Corporation would make on January 1, June 30, and December 31, 2015, related to the bond issue Problem 4 (10 points) Darling Corporation issued 200,000 shares of $20 par value, cumulative, 5% preferred stock on Janua 2013, for $4,500,000. In December 2015, Darling declared its first dividend of $800,000. Instructions (a) If the preferred stock is not cumulative, how much of the $800,000 would be paid to co stockholders? (b) If the preferred stock is cumulative, how much of the $800,000 would be paid to common stockhol

Answer rating: 100% (QA)

ANSWER ATTA... View the full answer