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The company obtained a Note Payable in the amount of $$10,000$ with a $12\%$

interest rate. The interest on the note is due every six months and the note was

signed on $\frac{11}{1}\frac{?}{22}.$ The loan proceeds were also received on $\frac{11}{1}\frac{?}{22}$ at the time

the note was signed.

Depreciation on the Plant is recorded using straight line with a useful life of $30$

years. With salvage value of $$25,000,$ and an original cost of $$625,000$ the annual

depreciation expense is $$20,000.$

Depreciation on the Equipment is recorded using straight line with a useful life of

$7$ years. With salvage value of $$5,000$ and an original cost of $$75,000,$ the annual

depreciation expense is $$10,000.$

Insurance Expense includes disbursements paid to the company's insurance

agent during $2015.$ The policy covering $\frac{3}{1}\frac{?}{22}$ through $02/28/23$ was at a rate of

$$1,200$ per month $($annual cost $$14,400).$ The policy for the period is for a

monthly cost of $$1,500($annual cost of $$18,000).$ Insurance is paid before the

beginning of the policy quarter.

Quarterly estimated tax payments of $$2,000$ have been posted to Income Tax

Expense. The company's CPA firm has estimated that the tax expenses for $2022$

will be $$9,200.$

The telephone bill covering the month December $2022$ is for $$320$ and its has not

been recorded in the accounting records as of yet.

You note that Dunn Industries has selected a marketing firm to assist with

expansion into Mexico. Their services are to begin in the second quarter of $2023$

at a rate of $$8,000$ per quarter and no disbursements have been made yet to the

marketing firm.

The company has an office lease for the period December $1$ through November

${30}^{th.}.$ The lease for the period $\frac{12}{1}\frac{?}{21}-\frac{11}{30}\frac{?}{22}$ was at a monthly rate of $$1,000$

and for the period $\frac{12}{1}\frac{?}{22}-\frac{11}{30}\frac{?}{23}$ is for $$1,200.$ Rent is paid before the

month on a monthly basis. Disbursements for rent for $2022$ have been posted

directly to Rent Expense.

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