1- How do you determine the book value of a long-term asset, e.g., equipment? 2)What is the accounting equation and how does it stay balanced? 3)Suppose Fleabag Hotel rents a room to a customer for three months paid up front, i.e., at the beginning of the stay. What will the entry look like when payment is received if the cost is $1000/month?

Group of answer choices

DR Cash 3000

CR Rental revenue 3000

DR Prepaid rent 3000

CR Rent payable 3000

DR Cash 3000

CR Unearned revenue 3000

DR Prepaid rent 3000

CR Rent paid 1000

4) Name an asset account, a liability account and an owners’ equity account and what those accounts stand for, i.e., what makes them increase and decrease.

5) How is gross profit different from net income?

6) Mondragon’s Pet Store has purchased a cash register for $2,500. Charlie Mondragon plans to use the cash register for five years at which time he thinks he will be able to sell it for $400. How much is the depreciation expense each year under straight-line method?