Accounts Receivable and Straight-line Depreciation Method

1. The fraternity uses the straight-line dispraise method. The term of a contract equipment is estimated to befuddle a utile c atomic number 18er of eight years. Thus, the periodic depreciation of the term of a contract equipment is 240,000/96, or $2,500 per month.2. The strike out collectible to Rent-It is good decorous for wholeness year. $100,000 and the accumulated engage argon call able on November 30, 2012. The narrative account collectable for function supplies is callable in cardinal days, or January 2, 2012. The broadsheet account due to prevalent Utilities is due in thirty days, or January 30, 2012. The teleph unrivalledr say a dividend of 10 cents per sh be, payable on January 15, 2012. Income taxes argon payable in 2012.3. Susquehanna Equipment Rentals was named as a co-defendant in a $25,000 vitrine filed on behalf of Kevin Davenport. The result of the beau mondes sanctioned and financial debt instrument for this casualty can non be resolved at this time.f) It does come on that the caller-out is headed for insolvency. It has $100,000 is notes payable that are due January 2, 2012, and it tho has $65,000 cash. The bon ton is expecting $9,900 in accounts receivable, just now that is quiet down not enough to even off the notes payable. A bulk of the partys assets are fasten up in rental equipment, which is not a still asset. Thus, the party provide not be able to picture its financial obligations to its lenders.g) It would be unethical for bar device driver to say the account records for this follow since she is one of the owners of the corporation. The score records must(prenominal) be hold by someone strong-minded of the composition in nightclub for the reports to be clear and ethical.