Mod 4 Practice Quiz.docx - 1. As part of the 2014 year end...

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1.As part of the 2014 year end close, Tritex Manufacturing reviews any potential liabilitiesrelated to 2014 activities that will be paid in 2015. Tritex received snow removal services inDecember and agreed to pay $10,000. They have not yet received the invoice. What wouldthe journal entry look like to record this obligation?
2.Suppose Plexco Manufacturing purchased a piece of plant equipment in December, 2015and, after installing and testing the equipment, it was put into service on January 1, 2016.The total cost to put the equipment into service was $400,000; it is expected to have a usefullife of 10 years and a salvage value of $60,000.Assuming Plexco uses straight-line depreciation, what would the accumulated depreciationrelated to this asset be on July 1, 2016?
3.Suppose Tolero Manufacturing purchased a piece of plant equipment in February, 2016 and,after installing and testing the equipment, it was put into service on April 1, 2016. The total costto put the equipment into service was $250,000; it is expected to have a useful life of 5 yearsand a salvage value of $10,000. Assuming Tolero uses straight-line depreciation, what would thedepreciation expense be for the month of August, 2016?

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Term
Fall
Professor
N/A
Tags
Depreciation, Generally Accepted Accounting Principles, Goods Sold

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