On April 1,2012,SAS Corp

question 73

Essay

On April 1,2012,SAS Corp.purchased and placed in service a plant asset.The following information is available regarding the plant asset:
Make the necessary adjusting journal entries at December 31,2012,and December 31,2013,to record depreciation for each year under the following depreciation methods:
a.Straight-line
b.Double-declining-balance.

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Definitions:

Quick Ratio

A liquidity metric that measures a company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

Accounts Receivable

Company receivables originating from goods or services offered to customers who haven't yet completed payment.

Accounts Payable

Funds that a company is required to pay to its suppliers for products or services received but for which payment has not yet been made.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing its current assets to its current liabilities.