On september 1 2010 drill far company purchased a tract of

Reference no: EM13568140

1. On November 15, 2010, Betty Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $138,460. The note is due in 90 days and has an interest rate of 7.5%. What is the appropriate journal entry to record at maturity?
A) Cash 138,460.00
Notes Receivable 138,460.00

B) Notes Receivable 138,460.00
Accounts receivable 138,460.00
Notes Receivable 138,460.00

C) Interest Revenue 2,596.00
Cash 141,056.13
Cash 138,460.00

D) Interest receivable 1,298.06
Notes receivable 139,758.06
Cash 141,056.13

E) Interest Revenue
Interest Receivable
Notes Receivable 138,460.00

2. On September 1, 2010, Drill Far Company purchased a tract of land for $2,300,000. The land is estimated to have a salvage value or $50,000, a useful life of four years, and contain an estimated 4,234,000 tons of iron ore. The company also purchased equipment to use in the extraction process that cost $220,450. The company plans to abandon the equipment when the ore is completely mined. During 2010, the company extracted and sold 1.25 million tons of ore. What is the depletion expense recorded for 2010?
A) $575,000
B) $679,027
C) $775,000
D) $562,500
E) $600,000

Reference no: EM13568140

Questions Cloud

The following statements compare a highly liquid asset : the following statements compare a highly liquid asset against an otherwise similar illiquid asset. which statement is

Which of the following approaches for calculating : which of the following approaches for calculating operational risk capital charges leads to a higher capital charge for

There is a university which has asked me to write a written : there is a university which has asked me to write a written statement in order to waive the gmat and a reason why it

Which of the following statements about its methodology for : which of the following statements about its methodology for calculating an operational risk capital charge in basel ii

On september 1 2010 drill far company purchased a tract of : 1. on november 15 2010 betty corporation accepted a note receivable in place of an outstanding accounts receivable in

The company forecasts that its net income this year will be : sanchez company has planned capital expenditures that total 2000000. the company wants to maintain a target capital

A stock has a beta of 12 and an expected return of 17 : a stock has a beta of 1.2 and an expected return of 17 percent. a risk-free asset currently earns 5.1 percent. the beta

Further it has 10000 of operating long term assets and an : myg reported 7500 of operating current assets and 1750 of operating current liabilities. further it has 10000 of

In 2010 freeze company had credit sales of 900000 and : in 2010 freeze company had credit sales of 900000 and granted sales discounts of 18000. on january 1 2010 allowance for

User Account

All Pages