Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note. entry made by Teton Company at the maturity of the note includes: (Round final calculations to the nearest dola a credit to Interest Payable of $3,750. a credit to Notes, Payable of $150,000. a debit to Interest Expense of $2,250 a credit to Cash of $150,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 40
Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note.
entry made by Teton Company at the maturity of the note includes: (Round final calculations to the nearest dolla
O a credit to Interest Payable of $3,750.
a credit to Notes,Payable of $150,000.
a debit to Interest Expense of $2,250.
a credit to Cash of $150,000.
Question 41
Which of the following depreciation methods will result in lower taxable income in earlier years and higher taxabl
later years?
units-of-production method
depletion method
straight-line method
double-declining-balance method
Transcribed Image Text:Question 40 Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note. entry made by Teton Company at the maturity of the note includes: (Round final calculations to the nearest dolla O a credit to Interest Payable of $3,750. a credit to Notes,Payable of $150,000. a debit to Interest Expense of $2,250. a credit to Cash of $150,000. Question 41 Which of the following depreciation methods will result in lower taxable income in earlier years and higher taxabl later years? units-of-production method depletion method straight-line method double-declining-balance method
Question 42
Rocky Company purchases inventory on account with a cost of $2,500. Rocky Company plans to sell this inventors
$5,600. Rocky Company uses the perpetual inventory method. The journal entry to record this purchase includes:
a debit to Purchaes for $2,500.
a debit to Inventory for $5,600.
a credit to Accounts Payable for $2,500.
a credit to Cash for $2,500.
Transcribed Image Text:Question 42 Rocky Company purchases inventory on account with a cost of $2,500. Rocky Company plans to sell this inventors $5,600. Rocky Company uses the perpetual inventory method. The journal entry to record this purchase includes: a debit to Purchaes for $2,500. a debit to Inventory for $5,600. a credit to Accounts Payable for $2,500. a credit to Cash for $2,500.
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