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Durr company makes a $60,000, 60-day, 12% cash loan to Ling Co. The maturity value of the loan is: (Use 360 days a year.)

McLean Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the double-declining-balance method.

The accrual basis of accounting recognizes expenses when cash is paid.

Tipsy Travel had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. There were no stockholder investments during the year. Calculate ending equity.

On April 12, Baker Industries agrees to accept a 60-day, 10%, $4,500 note from Spencer, Inc. to extend the due date on an overdue account. What is the journal entry that Spencer, Inc. would make, when it records payment of the note on the maturity date? (Use 360 days a year.)

During August, Bulldozers R Us sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is:

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

On January 1, Rolling Rock Magazine received $15,000 from subscribers for the annual subscriptions that it recorded in Unearned Subscription Revenue. The issues of the magazine are mailed to subscribers quarterly. What amount of subscription revenue should the magazine recognize on March 31 when the first issue is sent in March?

Tipsy Travel had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. There were no stockholder investments during the year. Calculate ending equity.

Marine, Ltd. purchased property for a building site. The costs associated with the property were:          Purchase price $ 185,000   Real estate commissions   15,000   Legal fees   700   Expenses of clearing the land   2,000   Expenses to remove old building   4,000   What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?