Q1– On your own words, describe the methods that companies can implement to depreciate plant assets. (2 Marks).
Q2– On June 1, 2020, ABC Company signed a $25,000, 120-day, 6% note payable to cover a past due account payable.
a. What is the total amount of interest to be paid on this note?
b. Prepare ABC Company’s general journal entry to record the issuance of the note payable
c. Prepare ABC Company’s general journal entry to record the payment of the note on
September 29, 2020 (2 marks).
Q3. What are the differences between sole proprietorship and corporation? (1 mark).