Accounting final

***********Tom liquidates an investment, and his proceeds will be received in 8 annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity?

$59,713.00

Eric is considering buying a car. He can either purchase the car outright or make 5 annual payments of $10,000 at the end of each year. If the interest rate is 7%, how much is the outright purchase price?

$41,002.00

A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the bonds are due in 10 years, what would be the total amount of interest paid over the life of the bonds?

$800,000

Klinc company - what is the cost of ending inventory at June 30th under the specific identification method?

1395 or 2230?

Present value is based on

All of these answers are correct

The present value of a $10,000, 5 year bond will be less than $10,000 if the

Contractual rate of interest is less than the market rate of interest

Assets classified as property, plant and equipment are recorded at

Each asset's original cost less depreciation since acquisition

The Kaplan Group sold $200,000 of 10-year bonds for $190,000. The face rate on the bonds was 8% and interest is paid annually on December 31. What entry would be made on December 31 when the interest is paid? (Numbers are omitted.)

Interest Expense Discount on Bonds Payable Cash

Par value

Is assigned per share in the corporate charter

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

Paid-in capital in excess of par increases $145,000.

In the balance sheet, the amount Premium on Bonds Payable is

added to the bonds payable

The acquisition of treasury stock by a corporation

decreases its total assets and total stockholders' equity

In present value calculations, the process of determining the present value is called

discounting

Cash flows from borrowing and paying off a 90-day bank loan are classified as

financing activities.

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

net income

**********A bond issuing at 101.25 means that the bond

sold for $1,012.50.

Treasury stock should be reported in the financial statements of a corporation as a

deduction from total paid in capital on retained earnings

Coffski, Inc. sold merchandise to a customer on credit. The invoice amount was $1,000; the invoice date was June 10th; credit terms were 1/10, n/30. Which of the following statements is true?

The customer should pay $1,000 if the invoice is paid on July 9th.

The amount of stock that may be issued according to the corporations charter is referred to as

authorized stock

Current accounting standards indicate that the costs of intangible assets with a definite life, such as goodwill, should

not be amortized but should be reviewed annually for impairment

The contractual interest rate on a bond is often referred to as the

stated rate

The paid in capital on access of par value is increased in the accounting records when

capital stock is issued at an amount greater than the par value

On the statement of cash flows from operating activities section would be affiliated by

cash receipts from sales activities

Which of the following items would be added to the company's cash balance on a bank reconciliation?

interest earned on the bank account

On January 1, a company sold a machine for $5,000 that it had used for several years. The machine costs $11,000, and had accumulated depreciation of $4,500 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine for the year ended December 31?

loss of 1500

Cash flows from acquiring and selling products are classified as

operating activities.

Which one of the following financial statements show the end of the year cash balance for a business entity?

Balance Sheet and Statement of Cash Flows

Wildhorse Co. issued 21,600 shares of $1 per common stake for $40 per share during 2017. The company paid dividends of $52,000 and issued long term notes payable of $475,000 during the year. What amount of cash flows from financing activities will be reported in the statement of cash flows?

$1,287,000 net cash flow

During a period of increasing purchase prices, which inventory costing method will yield the lowest cost of goods sold?

FIFO

Assume that E-Zip Corporation uses the indirect method to depict cash flows. Indicate where, if at all common stock issued for cash would be classified

financing activities section

On May 1, a company borrowed $30,000 from the First National Bank on a 1-year, 6% note. Assuming the company keeps its records on a calendar year basis, an entry is needed on December 31st to increase

interest payable by $1,200.

********All of the following accounts have normal credit balances except

inventory.

If Blue Springs Corp. issues 4000 shares at $10 per value common stock for

$450,000

*********The stockholders' equity section of the December 31, 2019, balance sheet is provided below: Common Stock, $30 par, 20,000 shares issued and outstanding$600,000Paid-in Capital in Excess of Par--Common Stock240,000Retained Earnings700,000Total Stockholders' Equity$1,540,000 Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share. On March 1, 2020, the company reacquired 4,000 shares of its common stock for $50 per share.Refer to Ladder Distributors. What is the total amount of stockholders' equity that will be presented on the company's March 31, 2020, balance sheet?

$1,340,000

if a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

$1,600,000

Treasury stock is

A corporation's own stock that has been reacquired by the corporation and is being held for future use.

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at:

A discount

Which set of items below are current assets?

Cash, Accounts Receivable, Inventory, and Office Supplies

Which of the following accounts would most likely appear on the income statement of the merchandise company, but not on the income statement of a service company?

Cost of goods sold

Which inventory cost flow method assigns the cost of the most recent items purchased to cost of goods sold?

LIFO

Dividends in arrears on cumulative preferred stock

Must be paid before common stockholders can receive a dividend

Unearned rent revenue is

Reported as a current liability

Which of the following is NOT considered to be a cash equivalent?

U.S. Treasury bills with an original maturity of six months (Anything with maturity greather than 90days is not considered Cash & Cash Equivalent)

If the market rate of interest is lower than the contractual interest rate, the bonds will set at

a premium

Lemke Corp—how much is the cost of goods for the units sold on April 15th?

260

Parlato Corp has an inventory turnover rate of 8 times. Calculate the company's average days to sell inventory.

46 days

A company purchased land and incurred the following costs: Purchase Price: $500,000 Cost of Parking Lot: 25,000 Evacuation Costs: 50,000 Razing old building: 12,500 Broker Fees: 10,000 What is the cost of the land?

572,500

Which one of the following correctly represents one of the basic financial statement models?

Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings

Generally Accepted Accounting principles require that research and development costs to develop a new product be

Expensed in the period incurred

A manufactorings company's weekly payroll is $80,000 for a 5- day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31 at the end of the company's fiscal year?

Increase wages by 48,000

Operating assets with no physical properties are called

Intangible assets

Which of the following is not classified as a current liability account?

Note payable, due in 2 years or Bonds payable due in 5 years

A particular company had $2,400 of supplies on hand on January 1. During the year, supplies with a cost of $4,000 were purchased. On December 31, the actual supplies on hand amounted to $2,000. After the adjustments are recorded and posted on December 31, what are the ending balances in the Supplies and Supplies expense accounts?

$ 2,000 $ 4,400

This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020.Refer to Fabian Woodworks. If the company uses the units-of-production method, what is the depreciation rate per hour for the equipment?

$0.10

While preparing the April 30th bank reconciliation, the accountant identified the following items: Company's balance according to the general labor $15,000 Outstanding checks 2,500 Bank service charge 15 A customer's NSF check returned by the bank 100 What is the company's adjusted cash balance at April 30th?

$14885

Fireworks City Information for 2020 and 2019 is presented below for this company which uses the straight- line depreciation method 2019 2020 Property, plant, and equipment 190,000 250,000 Acc dep. 85,000 100,000 Dep exp 47,500 62,500 Net sales 900,000 1,000,000 Total assets 475,000 625,000 Using the data for 2020, determine the average age of the company's property, plant, and equipment.

1.60 years

Lowery Company- if the company uses the FIFO inventory costing method, how much is cost of goods sold for March?

204

On August 1, Genuine Services accepted $6,000 advance payment from a customer for services to be provided in the future. The contract requires the company to review operations at each of the customer's six locations over the next 6 months. What Is the impact on the accounting equation of recording this transaction on August 1st?

Assets and liabilities increase

The effect of recording depreciation for the year

Decrease in assets and decrease in net income

On October 1st, a company borrowed $60,000 from Eight National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year-end adjustment entry is required to increase

interest payable by 1,050

Which of the following best describes the term "retained earnings" of a company?

The accumulated net income of a company that has not been distributed to owners in the form of dividends.

Which of the following is true for a corporation that issues 1,000 shares of $2 par common stock at $5 per share?

Total stockholders' equity will increase by $5,000.

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units Total cost of goods available for sale$4,361.75 30On hand, 90 units Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

$1,641.75

*******Data for the year ended December 31 are presented below: Sales (credit)$2,500,000Sales returns and allowances50,000Accounts Receivable (December 31)640,000Allowance for Doubtful Accounts (Before adjustment at December 31)20,000Estimated amount of uncollected accounts based on aging analysis45,000 Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense?

$24,500

Data for the year ended December 31 are presented below: Sales (credit)$2,500,000Sales returns and allowances50,000Accounts Receivable (December 31)640,000Allowance for Doubtful Accounts (Before adjustment at December 31)20,000Estimated amount of uncollected accounts based on aging analysis45,000 Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense?

$24,500

********The following information relates to the company's November bank reconciliation: Bank statement balance$10,700Unadjusted cash balance from the company's records?Deposit in transit2,100Outstanding checks1,200Bank service charges300Interest earned on the bank account100Customer's NSF check returned by the bank400 Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books?

$600 decrease

The following information relates to the company's November bank reconciliation: Bank statement balance$10,700Unadjusted cash balance from the company's records?Deposit in transit2,100Outstanding checks1,200Bank service charges300Interest earned on the bank account100Customer's NSF check returned by the bank400 Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books?

$600 decrease

Mark is planning on making an investment in a new computer system. He wants to know how much he must invest to have $9,000 in 4 years if the interest rate is 5% per year?

$7,404.30

If the stated interest rate is 12% per year, but it is compounded semiannually, then the adjusted rate used for present or future value calculations will be

6% per 6-month period.

The company received a promissory note from a customer on March 1, 2019. The principal amount of the note is $20,000; the terms are 3 months and 9% annual interest.Refer to the information for Accent Flooring. At the maturity date, the customer pays the amount due for the note and interest. What entry is required on the books of Accent Flooring on the maturity date assuming that none of the interest had already been recognized?

Increase Cash by $20,450, increase Interest Revenue by $450, and decrease Notes Receivable by $20,000

A manufacturing company's weekly payroll is $80,000 for a 5-day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period?

Increase wages expense by $48,000.

Failure to record the earned portion of unearned revenue would result in which of the following?

Net income being understated.

********Which of the following adjusting entries involves the cash account?

None of these choices are correct.

Which of the following adjusting entries involves the cash account?

None of these choices are correct.

B&B Painting reported the following information for the year ended December 31, 2019. Revenues$2,500,000Expenses2,000,000Retained Earnings at December 31, 2018100,000Retained Earnings at December 31, 2019450,000 How much was paid out in dividends in 2019?

$150,000

******If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

$2,000,000

This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par, cumulative, participating preferred stock. On January 1, 2019, the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share. Net income for the year ended December 31, 2019 was $375,000.Refer to Lanier Tech. What is the amount of the company's total capital stock at December 31, 2019?

$180,000

Klinc Company uses a perpetual inventory system and had the following inventory transactions for the month of June:June1On hand, 50 units at $14.00 each$700 4Purchased 115 units at $15 each$1,725 5Sold 100 units 10Purchased 75 units at $16 each$1,200 24Sold 50 units Total cost of goods available for sale$3,625 30On hand, 90 units The June 30th inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase.Refer to the information provided for Klinc Company. What is the cost of goods sold for June under the specific identification method?

$2,230

This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020.Refer to Fabian Woodworks. If the company uses the double-declining-balance depreciation method, what amount is the depreciation expense for 2020?

$2,880

********The company reported the following items on its financial statements for the year ended December 31, 2019: Sales$780,000Cost of Sales$700,000Selling, general & administrative expense20,000Other Expense15,000Dividends5,000Income Tax Expense12,500 Refer to Bay Camera. What amount will be reported as Retained Earnings on the Balance Sheet at December 31, 2019, assuming this is the first year of operations?

$27,500

The company reported the following items on its financial statements for the year ended December 31, 2019: Sales$780,000Cost of Sales$700,000Selling, general & administrative expense20,000Other Expense15,000Dividends5,000Income Tax Expense12,500 Refer to Bay Camera. What amount will be reported as Retained Earnings on the Balance Sheet at December 31, 2019, assuming this is the first year of operations?

$27,500

This company's end-of-year balance sheet consisted of the following amounts: Cash$75,000Accounts Receivable$250,000Property, plant & equipment350,000Long-term debt200,000Capital stock500,000Accounts payable100,000Retained earnings?Inventory175,000 Refer to Bargain Spot Fabrics. What is the retained earnings balance at the end of the current year?

$50,000

A company purchased land and incurred the following costs: Purchase Price$500,000Excavation Costs50,000Razing Old Building12,500Broker Fees10,000Cost of a Parking Lot25,000 What is the cost of the land?

$572,500

Tom liquidates an investment, and his proceeds will be received in 8 annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity?

$59,713.00

Which of the following entries properly closes a temporary account?

Income Summary400 Salaries Expense400

Under accrual accounting when is revenue recognized?

When earned, and expenses when incurred.

A corporation issued $150,000 of 10-year bonds at the stated rate of 8%, with interest payable semiannually. How much cash will the bond investors receive at the end of the first interest period?

$6,000

*********If the end-of-year supplies on hand totaled $200, and purchases totaled $300, and supplies on hand at the beginning of the year amounted to $100, how much will be reported as supplies expense for the current year?

$200

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June.June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units Total cost of goods available for sale$4,361.75 30On hand, 90 units Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, cost of goods sold for the month of June is:

$2,720.00

If the end-of-year supplies on hand totaled $200, and purchases totaled $300, and supplies on hand at the beginning of the year amounted to $100, how much will be reported as supplies expense for the current year?

$200

The company reported the following information for the year ended December 31, 2019:Net income$100,000Dividends6,000Retained earnings at December 31, 2019$120,000Refer to Beard Marine. What was the balance of Retained Earnings at January 1, 2019?

$26,000

Manatee Manufacturing sells a piece of equipment to make room for new machinery. Manatee will receive the sales price of $50,000 at the end of 4 years. Assuming interest at a rate of 6% per year, the Present Value of this future cash flow is how much?

$39,604.50

The company received a promissory note from a customer on March 1, 2019. The principal amount of the note is $20,000; the terms are 3 months and 9% annual interest.Refer to the information for Accent Flooring. What is the total amount of interest the company will receive when the note is collected?

$450

********Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2019. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2019 and 2020?

$1,000 $2,000

Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2019. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2019 and 2020?

$1,000 $2,000

The stockholders' equity section of the December 31, 2019, balance sheet is provided below: Common Stock, $30 par, 20,000 shares issued and outstanding$600,000Paid-in Capital in Excess of Par--Common Stock240,000Retained Earnings700,000Total Stockholders' Equity$1,540,000 Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share. On March 1, 2020, the company reacquired 4,000 shares of its common stock for $50 per share.Refer to Ladder Distributors. What is the total amount of stockholders' equity that will be presented on the company's March 31, 2020, balance sheet?

$1,340,000

This company reported the following information in the stockholders' equity section of its December 31, 2019 balance sheet: 7% Cumulative, Non-participating Preferred Stock, $100 par, 500 shares authorized, issued, and outstanding, callable at par value$50,000Common Stock, $12 par, 100,000 shares authorized600,000Paid-in Capital in Excess of Par--Common Stock25,000Retained Earnings825,000 Refer to Landmark Company. If the company repurchased 500 shares of its common stock for $20 per share, what is the amount of total stockholders' equity after this transaction?

$1,490,000

If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

$1,600,000

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June. June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units????? 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units????? Total cost of goods available for sale$4,361.75 30Ending units on hand????? Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

$1,629.25

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June. June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units Total cost of goods available for sale$4,361.75 30On hand, 90 units Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:

$1,641.75

Eli Company sells novelty items and offers terms of 1/10, n/30 to credit customers. One customer, Faulkner, Inc., purchased 100 Sweet-16 party decor packs with a list price of $20 each on March 5, 2019.Refer to the information provided for Eli Company. If the customer pays the amount of the invoice for its purchase on March 14, 2019, how much cash will Eli Company receive?

$1,980

Go Cars has $200 in cash, $500 in accounts recievable, $400 in marketbale securities, and $700 in inventory. Assuming the company also has $200 is accounts payable and $200 is unearned sales revenue, what is its cash ratio?

$1.50

You just won the lottery and have elected to receive 10 annual payments instead of the lump sum of $74,818.59. Calculate the amount of your annual payment assuming a 6% interest rate.

$10,165.44

A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax is 5% and the balance in the sales revenue account amounted to $220,500, what is the amount of the sales taxes owed to the taxing agency?

$10,500

*********A company reported the following information: 20202019Accounts receivable$50,000$65,000Inventories43,00040,000Accounts payable29,00039,000Net income100,000 Depreciation expense11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020?

$113,000

A company reported the following information: 20202019Accounts receivable$50,000$65,000Inventories43,00040,000Accounts payable29,00039,000Net income100,000 Depreciation expense11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020?

$113,000

*********While preparing the April 30th bank reconciliation, the accountant identified the following items: Company's balance according to the general ledger$15,000Outstanding checks2,500Bank service charge15A customer's NSF check returned by the bank100 What is the company's adjusted cash balance at April 30th?

$14,885

While preparing the April 30th bank reconciliation, the accountant identified the following items: Company's balance according to the general ledger$15,000Outstanding checks2,500Bank service charge15A customer's NSF check returned by the bank100 What is the company's adjusted cash balance at April 30th?

$14,885

Irwin Company counted its ending inventory as $178,000 at year-end, January 31, 2019. Upon review of the records, it was noted that the following items were in transit during the count:- Goods totaling $2,000 shipped by the supplier FOB destination on January 31 were received February 5th and were not counted by Irwin Company.- Goods totaling $5,000 shipped by the supplier FOB shipping point on January 30 were received February 2nd and were not counted by Irwin Company.- Goods totaling $6,000 shipped by Irwin Company to a customer FOB shipping point on January 31 were received by the customer on February 3rd and were counted by Irwin Company.What is Irwin Company's correct inventory balance on January 31, 2019?

$177,000

Cozy Corporation purchased supplies at a cost of $15,000 during the year. At January 1, supplies on hand were $5,000. At December 31, supplies on hand are $2,000. Calculate supplies expense for the year.

$18,000

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

$2,000,000

*********Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June. June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units Total cost of goods available for sale$4,361.75 30On hand, 90 units Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

$2,732.50

Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June. June1On hand, 50 units at $18.00 each$900.00 4Purchased 115 units at $18.20 each$2,093.00 5Sold 100 units 10Purchased 75 units at $18.25 each$1,368.75 24Sold 50 units Total cost of goods available for sale$4,361.75 30On hand, 90 units Refer to the information provided for Klump Co. If the company uses the LIFO inventory costing method, cost of goods sold for the month of June is:

$2,732.50

A company purchased a patent for $100,000 at the beginning of the current year which it believes has an expected useful life of 5 years. Fortunately, the patent has a legal life of 20 years. How much amortization expense should be recorded in the current year?

$20,000

Windsor Inc. has purchased equipment that requires annual payments of $60,000 to be paid at the end of each of the next 5 years. The appropriate discount is 6%. What amount will be used to record the equipment?

$252,742

The company reported the following items on its financial statements for the year ended December 31, 2019: Sales$780,000Cost of Sales$700,000Selling, general & administrative expense20,000Other Expense15,000Dividends5,000Income Tax Expense12,500 Refer to Bay Camera. What is the company's Net Income for the current year?

$32,500

**********Manatee Manufacturing sells a piece of equipment to make room for new machinery. Manatee will receive the sales price of $50,000 at the end of 4 years. Assuming interest at a rate of 6% per year, the Present Value of this future cash flow is how much?

$39,604.50

The following balances are provided:Cash$234,000Accounts Payable$ 97,000Inventories121,000Notes Payable (due 2018)211,000Land453,000Accounts Receivable46,000Refer to Benchmark Surveyors. Calculate Current Assets.

$401,000

The total amount of interest that will be paid on a 5-year, $90,000 note payable at 11% simple annual interest is?

$49,500

*********A company purchased land and incurred the following costs: Purchase Price$500,000Excavation Costs50,000Razing Old Building12,500Broker Fees10,000Cost of a Parking Lot25,000 What is the cost of the land?

$572,500

This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020.Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2021?

$6,000

*******This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020.Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2021?

$600

Data for the year ended December 31 are presented below: Sales (credit)$2,500,000Sales returns and allowances50,000Accounts Receivable (December 31)640,000Allowance for Doubtful Accounts (Before adjustment at December 31)20,000Estimated amount of uncollected accounts based on aging analysis45,000 Refer to AT&U Company. If the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the Allowance for Doubtful Accounts account after the adjustment for bad debts?

$69,000

On January 1, 2019, a company reported assets of $1,000,000 and liabilities of $600,000. During 2019, assets decreased by $100,000 and Stockholders' Equity decreased $200,000. What is the amount of liabilities at December 31, 2019?

$700,000

**********A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued?

$720

A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued?

$720

This company's end-of-year balance sheet consisted of the following amounts: Cash$75,000Accounts Receivable$250,000Property, plant & equipment350,000Long-term debt200,000Capital stock500,000Accounts payable100,000Retained earnings?Inventory175,000 Refer to Bargain Spot Fabrics. What amount should the company report on its Balance Sheet for Total Assets?

$850,000

On April 1, 2019, Gayton Sails accepted a $12,000 advance payment for maintaining a customer's fleet of sail boats. The contract is for a 12-month period. In May 2019, the company performed $1,200 worth of repairs. What is the remaining liability what would appear on the company's balance sheet at the end of May?

10,000

Eli company sells noverly items and offers terms of 1/10, n/30 to credit customers. One customer, Something inc. purchased 100 sweet-16 party décor packs with a list price of $20 each on March 5, 2019. Refer to the info provided,

1980

A company receiving payment of a $20,000 accounts receivable within 10 days with terms of 2/10, n/30, would record a sales discount of:

2% of $20,000

A company purchased a patent for $100,000 at the beginning of the current year which it believes has an expected useful life of 5 years. Fortunately, the patent has a legal life of 20 years. How much amortization experience should be recorded in the current year?

20,000

During the current year, gardner home center sold 800 power washers for $350 each. The power washers carry a 2-year warranty for repairs. Estimates indicate that the repair costs will average 2% of sales. How much warranty expense should be accrued at the end of the current year as a result of the sales of this product?

5600

Bibary Company has a beginning balance in its inventory account of $2,250 at the ending balance is $1,500. Cost of goods sold is 9,750. According to the cost of goods sold model, what was the amount of inventory purchased during the year?

9000

Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding?

95,000

Which of the following will not cause a trial balance to be out of balance?

A credit entry is posted to the wrong account, but still as a credit.

The stockholders' equity section of the December 31, 2019, balance sheet is provided below: Common Stock, $30 par, 20,000 shares issued and outstanding$600,000Paid-in Capital in Excess of Par--Common Stock240,000Retained Earnings700,000Total Stockholders' Equity$1,540,000 Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share. On March 1, 2020, the company reacquired 4,000 shares of its common stock for $50 per share.Refer to Ladder Distributors. Suppose the company reissued 1,000 shares of its treasury stock on June 1, 2020, for $39 each. Which of the following is true regarding the entry required to record this transaction?

A debit to retained earnings is required for $11,000.

The acquisition of land by issuing common stock is

A noncash transaction that is not reported in the body of a statement of cash flows

Which of the following would appear on the balance sheet as a current liability?

A probable loss in the amount of $4 million from a pending lawsuit or Payments that are likely to occur for pension benefits to employees

A customer's check for $25 that had been deposited into the company's checking account the previous month was returned stamped "NSF" by the bank. Which of the following journal entries is required?

Accounts Receivable25 Cash 25

*******During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.Refer to General Lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries?

Accounts Receivable636,000 Sales Revenue600,000 Sales Tax Payable36,000

During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.Refer to General Lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries?

Accounts Receivable636,000 Sales Revenue600,000 Sales Tax Payable36,000

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Adjusment for depreciation expenses: Depreciation is a charge on any assets. This will reduces the value of fixed assets and increase the expenses and net effect is that our overall net profit will reduce but there is no impact on cash flow of the company. Adter Adjustement for depreciation expenses: Expenses will increase income will reduce Value of the fixed assets will decrease There is no impact of depreciation expenses on cash flow

The statement of cash flows will not report the

Amount of checks outstanding at the end of the period

On January 1, (the beginning of the year), a company sold a piece of equipment which it had used for several years. The equipment had costs $45,000, and its accumulated depreciation amounted to $20,000 at the time of the sale. What are the net effects on the accounting equation of selling the equipment for the year?

Assets and shareholders equity increase by 5,000

Which of the following statements best describes the effects of recognizing revenue earned by a business entity?

Assets and stockholders' equity increase when either cash or credit sales are made.

During January, Gaston Wholesalers experienced some difficulties with cash flow so it approached one of its vendors about a payment extension. The vender agreed to the extension on the condition that the company sign a 30- day note that includes 9% interest. What journal entry is needed to record the retirement of the note on the maturity date?

Debit notes payable, debit interest expense, credit cash

Equipment with a residual value of $50,000 at the end of 10 years was acquired at the beginning of 2019 for $500,000. Assuming the use of the straight-line depreciation method, the journal entry to record depreciation expense for 2021 will have a debit to

Depreciation Expense and a credit to Accumulated Depreciation for $45,000.

Equipment with a residential value of $50,000 at the end of 10 years was acquired at the beginning of 2019 for $500,000. Assuming the use of the straight line depreciation method, the journal entry to record depreciation expense for 2021 will have a debit to

Depreciation expense and a credit to accumulated depreciation for $45,000

Equipment purchased at the beginning of the year for $200,000 with a residential value of $20,000 is being depreciated over a 5-year period using the double- line—declining balance method. Which of the following statement is correct concerning the financial statement at the end of the year?

Depreciation expense is 72,000

Assume that the Fitzgerald Corporation uses the indirect method to deposit cash flows. Indicate where, if at all, a stock dividend declared and issued would be classified on the statement of cash flows.

Does not represent a cash flow

The following transactions occurred during June: June 1Purchased two new maintenance carts on account at $750 each. Payment is due in 30 days June 8Accepted $500 of advance payments from customers for services to be provided next month June 15Received the utility bill for $300. Payment is due in 30 days June 20Billed customers $1,500 services provided. Payment is due in 30 days. June 30Received $500 from customers who were billed earlier Refer to Hesson Properties. What journal entry is required to record the purchase of the carts?

Equipment1,500 Accounts Payable1,500

There are some liabilities such as income taxes payable and the estimated warranty liablility, for which the amounts must be estimated so they can be recorded in the same period as the related revenues. Failure to record these amounts in the same period as the related revenues is a violation of the

Expense recognition principle

For which type of merchandise would a company most likely use the specific identification method of inventory costing?

Fine jeweler

If the market rate of interest is 10%, a $13,000, 11%, 10 year bond that pays interest annually would sell at an amount:

Greater than face value

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long term financing is that

Interest must be paid on a periodic basis regardless of earnings

What is the impact on the accounting equation of recording the accrual of interest expense?

Liabilities increase and stockholders equity decreases or Cash decreases, Notes Payable decreases, Income statement not affect

When the market value of inventory items has declined below their costs, which method would be the most appropriate in complying with GAAP?

Lower- of- cost- or- market

This company has a weekly payroll of $10,000 for its employees who work Monday through Friday. Federal and state income taxes are withheld in the amounts of $1,700 and $400, respectively, and FICA taxes are withheld at a mandatory rate of 7.65% (6.2% for Social Security and 1.45% for Medicare). In addition, the federal and state unemployment taxes are applied at rates of 2% and 5%, respectively. The company's year-end is December 31.Refer to the information for Gainesville Truck Center. Which of the following statements is true regarding the entry to record wages and the related liabilities?

Medicare tax payable will be credited in the amount of $145.

********Failure to record the earned portion of unearned revenue would result in which of the following?

Net income being understated.

The primary purpose of the statement of cash flows is to

Provide info about the cash receipts and cash payments during a period

The College Store accepts MasterCard for payments of purchases made by students. The credit card drafts are deposited directly in a bank account. MasterCard charges a 1.55% collection fee. Credit card drafts totaling $10,000 are deposited during August. Recording the sales and deposits will result in an increase in

Service Charge Expense for $155

**********The asset account, Supplies, has a balance of $10,000 on January 1. During January, $22,000 of supplies were purchased on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $2,000. What adjusting entry is necessary at January 31?

Supplies Expense30,000 Supplies30,000

The asset account, Supplies, has a balance of $10,000 on January 1. During January, $22,000 of supplies were purchased on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $2,000. What adjusting entry is necessary at January 31?

Supplies Expense30,000 Supplies30,000

At the year- end inventory count, if goods in transit are shipped FOD shipping point, they should be included in the inventory count of

The buyer (purchasing company)

Which of the following is not a right preference associated with preferred stock

The right to vote

Each of the following items is considered a cash equivalent except

a 180-day note issued by a local government.

Deprecation is a process by which

a company allocates an asset's cost throughout its useful life

General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%. Refer to the general lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. Which of the following records the sale of the batteries?

accounts receivable 636,000 sales revenue 600,000 sales tax payable 36,000

Which of the following best describes "cost of goods available for sale"?

allocated into cost of ending inventory and cost of goods sold

The purchase of office equipment on credit has what effect on the accounting equation?

assets and liabilities increase

If the market rate of interest is greater than the contractual rate of interest, bonds will sell

at a discount

Which of the following most likely would be classified as a current liability?

dividends payable

The board of directors of Metiche Inc. declared a cash dividend of $3 per share on 41,000 shares of common stock in July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to the second declaration of the dividend on July 15, 2017 are to

increase stockholders' equity and decrease assets

All of the following accounts have normal credit balances except

inventory.

Cash flows from acquiring and disposing of long-term assets are classified as

investing activities.

On January 1, a company sold a machine for $5,000 that it had used for several years. The machine cost $11,000, and had accumulated depreciation of $4,500 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine for the year ended December 31?

loss of $1,500

Which of the following are Noncurrent assets?

machinery and equipment

Of the items below, the one that appears first on the statement of cash flows is

net income (decrease) in cash

When using the indirect method to determine operating cash flows, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?

noncash investing or financing activity

Assume the Fitzgerald Corporation uses the indirect method to deposit cash flows. Indicate where, if at all, investion inventory increase with cash would be classified as the statement of cash flows?

operating activities section

The order of presentation of activities on the statement of cash flows is

operating,investing, financing

If common stock is issued for an amount greater than par value, the excess should be credited to

paid in capital excess of par value

Gainesville Trucker Center This company has a weekly payroll of $10,000 for its employees who work Monday through Friday. Federal and State income taxes are withheld in the amounts of $1,700 and $400 respectively and FICA taxes are withheld at a mandatory rate of 7.65% (6.2% for Social Security and 1.45% for Medicare). In addition, the federal and state unemployment taxes are applied at rates of 2% and 5% respectively. The company's year-end is December 31. Refer to the information for Gainesville Trucker Center. Which of the following statements is true regarding the entry to record wages and the related liability?

social security tax payable will be credited in the amount of 620 or A medicare tax payable will be credited in the amount of 145

A bond issuing at 101.25 means that the bond

sold for $1,012.50.

The cost of goods sold is equal to:

the cost of goods available for sale less ending inventory. or BI + P= COGAS - EI= COGS