I need help solving these! 1. 6 month note receivable at 12% for $4,000 dated Se

Question

I need help solving these!
1. 6 month note receivable at 12% for $4,000 dated September 1, 2009, has accrued interest revenue of ________ on December 31, 2009.

2. An acid test ratio of at least ______ means that current liabilities may be paid without using inventory.


3. A company purchased a used machine for $80,000. The machine required installation costs of $8,000 and insurance while in transit of $500. At which of the following amounts would be equipment be recorded?


4. On January 1, 2011, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2011 and 12,000 in 2012. I need help solving these!
1. 6 month note receivable at 12% for $4,000 dated September 1, 2009, has accrued interest revenue of ________ on December 31, 2009.

2. An acid test ratio of at least ______ means that current liabilities may be paid without using inventory.


3. A company purchased a used machine for $80,000. The machine required installation costs of $8,000 and insurance while in transit of $500. At which of the following amounts would be equipment be recorded?


4. On January 1, 2011, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2011 and 12,000 in 2012. I need help solving these!
1. 6 month note receivable at 12% for $4,000 dated September 1, 2009, has accrued interest revenue of ________ on December 31, 2009. I need help solving these!
1. 6 month note receivable at 12% for $4,000 dated September 1, 2009, has accrued interest revenue of ________ on December 31, 2009. I need help solving these!


2. An acid test ratio of at least ______ means that current liabilities may be paid without using inventory.


3. A company purchased a used machine for $80,000. The machine required installation costs of $8,000 and insurance while in transit of $500. At which of the following amounts would be equipment be recorded?


4. On January 1, 2011, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2011 and 12,000 in 2012.

Explanation / Answer

1. 4000*12%*4/12 = 160

2.atleast one

3.total cost of equipment to be recorded is 80000+8000+500=88500

4.depreciation per hour = 40000- 4000/24000=1.5 per hour

So depreciation in year 2011 is 8000*1.5=12000

Depreciation in year 2012 is 12000*1.5=18000

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