accounting 201

On January 1st (the beginning of the year), a company sold a piece of equipment for $30,000 which it had used for several years. The equipment had cost $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?

assets and equity increase $5,000

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

cost of goods available for sale is allocated into cost of goods on hand and COGS at the end of the fiscal year

on august 1. genuine services accepted a $6,000 advance payment from a customer's for service to be provided in the future

total assest and liabilities increase

Klinc company uses a perpetual inventory system.

$1,395 or $2,230

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

fireworks question

1.60

During the current year, Gardner home center

5,600

General lighting question

Accounts Receivable 636,000, Sales Revenue 592,200, Sales Tax Payable 36,000, Federal Excise Tax Payable 7,800

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

FIFO

Which of the following inventory costing method yields the lowest cost of goods sold during a period of rising inventory costs?

FIFO

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.

Increase wage expenses by $ 48000

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

bonds payable

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

not be amortized, but should be reviewed annually for impairment