Question

A business purchased equipment for

$ 125 comma 000$125,000

on January? 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the

straightminus?line

depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year? 2019? (Assume the residual value of the acquired equipment to be? zero.)??

A.

Debit

$ 125 comma 000$125,000

to Depreciation

Expenselong dash—?Equipment,

and credit

$ 125 comma 000$125,000

to Accumulated

Depreciationlong dash—Equipment.

B.

Debit

$ 25 comma 000$25,000

to Depreciation

Expenselong dash—?Equipment,

and credit

$ 25 comma 000$25,000

to Accumulated

Depreciationlong dash—Equipment.

C.

Debit

$ 25 comma 000$25,000

to Depreciation? Expense, and credit

$ 25 comma 000$25,000

to Equipment.??

D.

Debit

$ 125 comma 000$125,000

to? Equipment, and credit

$ 125 comma 000$125,000

to Cash.

Use the following to calculate the

acidminus?test

ratio.? (Round your answer to two decimal? places.)

Cash	$ 150 comma 000$150,000
Shortminus?term investments	17 comma 00017,000
Net current receivables	280 comma 000280,000
Inventory	310 comma 000310,000
Total current liabilities	750 comma 000750,000

A.

0.810.81

B.

1.011.01

C.

0.60.6

D.

8.828.82

Calculate the current ratio using the following? information: (Round your answer to two decimal? places.) Cash $ 6 comma 000 $6,000 Accounts Receivable 1 comma 200 1,200 Prepaid Rent 1 comma 100 1,100 Land 40 comma 000 40,000 Equipment 4 comma 000 4,000 Accumulated Depreciation 1 comma 000 1,000 Accounts Payable 4 comma 000 4,000 Salaries Payable 800 800 Notes Payable long dash —long term 8 comma 000 8,000 A. 1.73 1.73 B. 2.08 2.08 C. 1.5 1.5 D. 3.13 3.13

Answer 1