On 1 Jan 2015, Evers Company Purchased the following two machines for use in its production process. Machine A:  The cash price of this machine was $48,000.  Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first yeaer of operations.  Evers estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period.  Assume that the straight-line method of depreciation is used. Machine B:  The recorded cost of this machine was $180,000.  Evers estimates that the useful life of the machine is 4 yeas with a $10,000 salvage value remaining at the end of that time period. Instructions: a)  Prepare the following for Machine A. a.  The journal entry to record its purchase on 1 January ‘15 b.  The journal entry to record annual depreciation at 31 Dec ‘15 b)  Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. a.  Evers uses the straight-line method of depreciation b.  Evers uses the declining-balance method.  The rate used is twice the straight-line rate. c.  Evers uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units.  Actual usage is as follows 2105, 45,000 units; 2016, 35,000 units; 2017, 25,000 units; 2018, 20,000 units. c)  Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2015)?  The highest amount in year 4 (2018)?  The highest total amount over the 4-year period?

 Mel O'Conner owns rental properties in Michigan. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in local newspapers. The property managers transfer cash to O'Conner monthly and prepare their own bank reconciliations. The manager in Lansing has been stealing from the company. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than O'Conner actually has in the bank. In negotiating the sale of the Lansing property, O'Conner is showing the balance sheet to prospective investors.Identify two parties other than O'Conner who can be harmed by this theft. In what ways can they be harmed? Discuss the role accounting plays in this situation. What internal controls could be put in place to prevent this type of theft?

Name two bones of the leg