Q41. Depreciation On January 1, 20×1, Entity A purchased a building with the following information. (a) Cost of building = $900,000 (b) Residual value (salvage
Q40. Purchase of noncurrent assets Entity A purchased a building at $860,000 with a long-term bank loan of $860,000. Prepare a journal entry to record
Q39. Unearned revenue On December 1, 20×1, Entity A received $600 for a one-year subscription for twelve issues of a monthly magazine. The magazine is
Q38. Prepaid expenses On December 1, 20×1, Entity A purchased a new insurance plan that covers one year period from December 1, 20×1 to November
Q37. Accounts receivable Entity A decided to write off $6,000 in accounts receivable that became uncollectible. Entity A uses the allowance method for bad debts
Q36. Merchandise transactions Entity A had the following transactions: (1) May 1, 20×1: Purchased 260 units of merchandise at $10 per unit and paid $2,600