Question 40 Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note. entry made by Teton Company at the maturity of the note includes: (Round final...

Extracted text: Question 40 Zions Bank lends Teton Company $150,000 on August 1. Teton Company signs a $150,000, 6%, 8-month note. entry made by Teton Company at the maturity of the note includes: (Round final calculations to the nearest dolla O a credit to Interest Payable of $3,750. a credit to Notes,Payable of $150,000. a debit to Interest Expense of $2,250. a credit to Cash of $150,000. Question 41 Which of the following depreciation methods will result in lower taxable income in earlier years and higher taxabl later years? units-of-production method depletion method straight-line method double-declining-balance method


Extracted text: Question 42 Rocky Company purchases inventory on account with a cost of $2,500. Rocky Company plans to sell this inventors $5,600. Rocky Company uses the perpetual inventory method. The journal entry to record this purchase includes: a debit to Purchaes for $2,500. a debit to Inventory for $5,600. a credit to Accounts Payable for $2,500. a credit to Cash for $2,500.