K ltd purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000 Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using:
(I)- Straight-line method.
(II)- Units of Production method if the machine produces 100,000 units.
Here is a table of units produced each year:
Q.2 A company has the following unadjusted account balances at December 31, of the current year: Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end:
Q.3 Prepare journal entries to record the following selected transactions that occurred during the company’s operations:
Q.4 On July 19, 2018, Omar Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine.
a. What is the maturity date of the note?
b. How much interest will Omar pay to SMC on this note?
c. Record the note?
Q.5 what do you mean by liabilities? Discuss its classification as per balance sheet.
Sample Solution
