On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

A loss on disposal of a plant asset occurs if the cash proceeds received from the asset sale is less than the asset’s book value.

Bering Rock acquires a granite quarry at a cost of $590,000, which is estimated to contain 200,000 tons of granite and is expected to take 6 years to remove. Compute the depletion expense for the first year assuming 38,000 tons were removed and sold.

Spears Co. had net sales of $35,400 million. Its average total assets for the period were $14,700 million. Spears’ total asset turnover equals:

Which of the following do not apply to unearned revenues?

Bering Rock acquires a granite quarry at a cost of $590,000, which is estimated to contain 200,000 tons of granite and is expected to take 6 years to remove. Compute the depletion expense for the first year assuming 38,000 tons were removed and sold.

Total asset cost plus depreciation expense equals book value.

Promissory notes that require the issuer to make a series of payments consisting of both interest and principal are:

The contract between the bond issuer and the bondholders identifying the rights and obligations of the parties, is called a(n):

A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is: