Peter Corporation borrows $100,000 from Wisconsin State Bank on November 1, 2021. The loan has a rate of 6% and is due on May 1, 2022. How much interest expense should Peter Corporation record on its income statement on December 31, 2021 (assuming this is their only debt)? Round your answer to the nearest whole dollar.
Read DetailsJanuary 1, 2021, Wangerin purchases a delivery truck for $15,000. She uses units of activity to allocate depreciation expense and has no salvage value for the truck. The truck is expected to last 100,000 miles. Actual activity: January – 10,000 miles February – 10,000 miles March – 20,000 miles April 1st, Wangerin sells the truck for $7,500. What is the gain (loss) recognized?
Read DetailsBucky Badger Inc. purchases a piece of equipment on June 15, 2021 for $35,000. Company A uses the double declining balance method to calculate depreciation and has determined the equipment has a 5 year useful life and a salvage value of $5,000. What is the journal entry required by Bucky Badger Inc. to record depreciation expense on December 31, 2022? Answer should be expressed as : DR (ACCOUNT NAME) $X,XXX CR (ACCOUNT NAME) $X,XXX No dates or explanations are needed.
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