Question 40Zions 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 dollaO 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 41Which of the following depreciation methods will result in lower taxable income in earlier years and higher taxabllater years?units-of-production methoddepletion methodstraight-line methoddouble-declining-balance method Question 42Rocky 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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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

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

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.6BE: Journalizing installment notes On the first day of the fiscal year, a company issues 45,000, 8%,...

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