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Explain the journal entry, in the space below, for the following transaction: On January 1, Year 1, Terry Silver Enterprises purchased equipment at a cost of $300,000 (depreciated using the straight-line method).  The equipment had an estimated useful life of 7 years and a salvage value of $20,000.  On January 1, Year 4, Terry Silver Enterprises sold the equipment to John Kreese Corporation for cash at a loss of $12,000.   Provide ONLY the entry necessary for the disposal of the equipment. You do NOT need to worry form.  Just tell me the date and what accounts are debited and credited and the amounts.  For example, your response might be on January 1, debit Supplies 100 and credit Accounts Payable 100.

Augustus Corporation spent $2,400,000 to develop a new product; it incurred additional expenses of $600,000 associated with patent filing fees and legal fees to defend the patent.  The patent has a life of 20 years but it only expected to provide an economic benefit for 15 years.  How much amortization expense should Augustus Corporation recognize per year? SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

Non Ti Scordare di Me Company purchased equipment on January 1, Year 1 with a cost of $250,000, a useful life of 7 years, and a $40,000 salvage value.  Calculate accumulated depreciation after Year 2 if the company used the activity method, assuming production of 50,000 units in Year 1 and an increase of 10,000 units per year for every year thereafter.  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

Woody Organization issued a five-year note on January 1, Year 1 with a face value of $100,000 and a stated interest rate of 3%, in exchange for a vehicle.  Annual payments of principal and interest are required on December 31st of each year.  What is the total amount of interest expense to be recognized over the life of the note?

Santos Corporation reported the following transactions with respect to inventory purchases and sales during the month of September.  Santos Corporation uses a perpetual inventory system, and reported Inventory on August 31stof 500 units, all purchased at $34/unit.               September 3:    Purchased 1,000 units at $46/unit             September 10:  Sold 1,200 units for $100/unit             September 18:  Purchased 700 units for $62/unit             September 26: Sold 500 units for $120/unit             September 29:  Purchase 800 units for $60/unit   If the company uses the FIFO cost flow method, what is COST OF GOODS SOLD for September?  

Old School Company, using the NET method, purchased goods for resale from Not-So-Honest Incorporated on September 26.  Terms of purchase were FOB Destination, 2/15, n/30.  The gross purchase amount was $12,000, the goods arrived on September 29, and Old School Company paid the next day.  On September 30, Old School Company should make the following journal entry:

Non Ti Scordare di Me Company purchased equipment on January 1, Year 1 with a cost of $250,000, a useful life of 7 years, and a $40,000 salvage value.  Calculate depreciation expense for Year 1 if the company uses the straight-line method.  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

The accountant for Beauty Beavis Corporation failed to make an adjusting entry for the systematic expensing of a fixed asset.  This error results in:

Casanova Company provided the following information for the preparation of its Year 3 Statement of Cash Flows; net income was $125,000 and the beginning Year 3 Cash balance was $40,000. Decrease in Accounts Receivable                       $27,000 Cash Received for Issuance of Bonds               $70,000 Cash Received for Sale of Building            $108,000 Decrease in Inventory                                 $14,000 Cash Paid to Purchase Equipment                      $52,000 Loss on Sale of Building                                             $16,000 Cash Paid to Reduce Long-Term Debt               $19,000 Cash Paid for Dividends                                            $26,000 Common Stock Exchanged for Land          $41,000 Depreciation Expense                                 $12,000  The balance of the Cash account as of December 31, Year 3 is:

Santos Corporation reported the following transactions with respect to inventory purchases and sales during the month of September.  Santos Corporation uses a perpetual inventory system, and reported Inventory on August 31stof 500 units, all purchased at $34/unit.               September 3:    Purchased 1,000 units at $46/unit             September 10:  Sold 1,200 units for $100/unit             September 18:  Purchased 700 units for $62/unit             September 26: Sold 500 units for $120/unit             September 29:  Purchase 800 units for $60/unit   If the company uses the LIFO cost flow method, what is GROSS PROFIT for September?