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d. e. <"'-~' ~ P ve rLo-t r1 ' t -"Lo , Delivery equipment that cost $20,000 was being used by the store. The equipment has an
estimated useful life of five years. Assume depreciation for a full year for 20B . The
asset will be depreciated evenly over its useful life. ().':'C...J 'I e 'f ,,()(j.J (
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/ , , 1 9J Rich also operates an alteration shop. The shop did some alterations for J.B. Smith. At
the end ofDecember 31 , 20B, J.B. Smith had not paid for alterations completed
amounting to $450. This amount has not been recorded as Revenue. Collection is
expected during January 20C.
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0€V\J~ u.. h. Lt, ooc Only July 1, 20B, a two-year insurance premium amounting to $1,000 was paid in cash
and debited in full to Prepaid Insurance. ·1ttSLN Clt u e~l
~.f r r I f\~ g. o-zoo 1 d The remaining basement space is rented to Spear Specialty for $360 p r onth payable
monthly. On December 31 , 20B, the rent for November and December OB was not
collected nor recorded. Collection is expected January 10, 20C.
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The company borrowed $10,000 on October 1, 20B. The bank charges 10% interest
which is payable when the loan is due: September 30, 20C. ,vv ·,oo_o~-t q(Un~ UJl · niY~'s+ ~Vv
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- Spring '14
- Financial Accounting