Q41. Depreciation On January 1, 20×1, Entity A purchased a building with the following information. (a) Cost of building = $900,000 (b) Residual value (salvage
Q40. Purchase of noncurrent assets Entity A purchased a building at $860,000 with a long-term bank loan of $860,000. Prepare a journal entry to record
Q39. Unearned revenue On December 1, 20×1, Entity A received $600 for a one-year subscription for twelve issues of a monthly magazine. The magazine is
Q38. Prepaid expenses On December 1, 20×1, Entity A purchased a new insurance plan that covers one year period from December 1, 20×1 to November
Q45. Review of solvency ratios Calculate the following solvency ratios based on the information below: (1) Debt to equity ratio (2) Debt to assets ratio
Q44. Review of liquidity ratios Calculate the following liquidity ratios based on the information below: (1) Current ratio (2) Quick ratio (3) Working capital ratio