Accounting Final

Kenda Corporation sold land with a cost of $50,000 for $80,000 cash. Which of the following is the correct presentation of this information on the Cash Flow Statement?

Deduct the gain of $30,000 from net income in the operating activities section and show a cash inflow of $80,000 from the sale of land in the investing section.

The various methods, rules, practices and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called

generally accepted accounting principles.

Preferred stock

has the right to receive dividends before common stockholders.

Assume that on December 31, 2016, Stark Company has outstanding 10,000 shares of $25 par, 6% non-cumulative, preferred stock and 100,000 shares of $5 par common stock. Stark was unable to declare a dividend in 2014 or 2015 but wants to declare a $100,000 dividend for 2016. The amount of the cash dividend to be paid to the preferred stockholders in 2016 will be:

$15,000 x 3 = 45,000 (10,000 x 25 x .06)

Niki, Inc. issues $120,000 of 8% bonds that pay interest semi-annually and mature in 5 years. Compute the bond issue price assuming that the prevailing market rate of interest is 6% per year compounded semi-annually.

130,237

Juan, Inc. had the following balances in accounts for the year ending December 31st: Accounts receivable: $3,480,000 (Dr.) Allowance for Doubtful Accounts: $22,000 (Cr.) Net credit sales: $5,500,000 (Cr.) Juan, Inc. estimates bad debt expense as 3% of net credit sales for the year. The adjusted balance in the Allowance for Doubtful Accounts will be:

187,000 (5,500,000 x .03 = 165,000) (165,000+22,000 = 187,000)

Billy's Building Products provides the following information for 2017. What amount should Billy report as current liabilities on the December 31, 2017 Balance Sheet?

$200,000 (accounts payable + interest payable + Mortgage payable due in annual installments of $10,000+ Estimated warranty liability + Wages payable)

The stockholders' equity section of Bleak, Inc. is as follows: Preferred stock, 7%, $100 par, 1,000 shares authorized, 300 shares issued and outstanding $40,000 Additional paid-in capital - preferred 5,000 Common stock, $10 par, 15,000 shares authorized, 4,000 shares issued and outstanding 50,000 Additional paid-in capital - common 30,000 Retained Earnings 512,000 Total Stockholders' Equity $637,000 Based only on this information, what was the average issue price of the commom stock?

20

Daniel Depot provides the following information for 2017. What amount should Daniel report as current liabilities on the December 31, 2017 Balance Sheet?

249,000

Bran Co. had 2015 net income of $2,800,000. Expenses included depreciation and amortization of $500,000. During 2015, the company purchased land and buildings at a cost of $500,000 for cash and issued shares of common stock for $100,000 for cash. Bran sold equipment for $200,000 with no gain or loss recorded on the sale. Bran's cash flow from investing activities is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. Use the following abbreviations for the second blank: I for inflow O for outflow

300000 and Outflow

The Indiana Jones Corp. reported the following information for the month of September 2015: During September, Indiana Jones Corp. sold 200 units. The company uses the periodic inventory system. Using the weighted-average method of inventory accounting, compute the cost of the ending inventory. (Do Not enter dollar signs.)

3200

Which of the following relate to cash flow from financing: 1. Decrease in salaries payable. 5. Purchase equipment. 2. Increase in accounts payable. 6. Decrease in taxes payable. 3. Sell investments in land. 7. Pay cash dividends. 4. Issue bonds for cash. 8. Issue common stock for cash. 5. Purchase equipment. 6. Decrease in taxes payable. 7. Pay cash dividends. 8. Issue common stock for cash.

4, 7, and 8.

A record used to accumulate amounts for each individual asset, liability, owners' equity, revenue, expense and component of stockholders' equity is called:

Account

On September 10, Demeter Corp. paid $8,000 for the utilities used, billed, and recorded in August. Using the following abbreviations to fill in the blanks, indicate whether this transaction would: increase (I), decrease (D), not change (NC) the total of each of the elements of the accounting equation.

Assets would Decrease(D) Liabilities would Decrease(D) Owners' Equity would Not Change(NC)

One of the primary assumptions in preparing financial reports is the going concern. This assumption:

Is that an entity is not in the process of liquidation and that it will continue indefinitely.

A chronological record of each transaction is recorded first in the:

Journal

The records of Mad Men Company showed the following about a laser cutting machine: Purchased on 1/1/2014 for $146,000 Estimated residual value, $6,000 Estimated life, 7 years Sold the machine on 4/1/2017 for $70,000 cash Assume Mad Men uses the straight-line depreciation method. Mad Men should record a [a] of $[b] on the sale of the machine. Use the following abbreviations for the first blank: G for gain L for loss

Loss of $11,000

Which of the following items would be used to adjust the balance per bank in a bank reconciliation:

Outstanding checks

In preparing a bank reconciliation, all of the following would be used to adjust the balance per books, EXCEPT:

Outstanding checks.

Which of the following accounts normally has a debit balance?

Sales Returns and Allowances

Jack Sparrow, Inc. has a customer, Barbosa Products Corp. The customer has complained about a shipment of goods that arrived late and which had lower quality than desired. Jack Sparrow offered Barbosa an invoice reduction of $18,000. Sparrow would refer to this invoice reduction as a:

Sales allowance.

Which of the following statements about Treasury Stock is TRUE?

The Treasury stock account has a debit balance

The Walking Dead Co. provides services for both cash and on account. The accounts are adjusted monthly. For September, the following information is available: Accounts Receivable on September 1st is $22,400 Allowance for Doubtful Accounts on September 1st is $4,400. Services provided during September for cash $20,000. Services provided during September on account $45,000. During the month collections on account were $34,400 and accounts written off as bad debts were $2,000. The Walking Dead estimates bad debts at 8% of credit sales.

The dollar amount for the bad debt adjustment will be 3600

Black and Red Corp. has the following accounts and balances as of December 31, 2017.

The total current liability amount is $52000

An accrued asset could also be called

an accrued revenue.

Which of the following methods of determining bad debt expense overstates the total assets of the company and violates the matching principle?

Direct write-off method.

Tommen, Inc. has the following stock issued as of December 2015: 5% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock dividend is cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Tommen declares dividends of $210,000. How much of this dividend will be distributed to Preferred Stock?

$100,000

Andy, Inc. was in the process of reconciling its bank balance with the company records and found an unadjusted book balance of $17,120, outstanding checks of $2,065, non-sufficient funds (NSF) checks of $508, deposits in transit of $1,650, bank service charges of $75, a customer note collected by the bank of $3,000 and interest on the note collected of $40. The adjusted book balance on the bank reconciliation should be? (Do not enter dollar signs.)

$19,577 (17,120 + 3040 - 75 - 508)

Corgi, Inc. has the following stock issued as of December 2015: 6% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock dividend is cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Corgi declares dividends of $210,000. How much of this dividend will be distributed to Common Stock?

$90,000 (.06 x 100 x 10000) = 60,000 (60,000 x 2) = 120,000 (210,000 - 120,000)= 90,000

Which of the following statements is TRUE about capital and revenue expenditures related to the long-term operating assets of a company?

A capital expenditure will either increase the life or the productivity of the operating asset.

On June 1, 2012, Rob Co. reacquired 75,000 shares of its own $10 par common stock at $12 per share. On December 8, 2016, Rob reissued 50,000 of their treasury shares for $700,000. The journal entry to record the reissuance of the treasury shares includes:

A credit to Additional paid-in capital-treasury stock of $100,000

What type of account is Interest Revenue and on which financial statement is it reported?

Account type Revenue reported on the Income Statement

Kenny Company called in its $100,000 par value bonds at 103. The carrying value of the bonds was $101,000. Which of the following is the correct presentation of this transaction on the statement of cash flows?

Add a $2,000 loss to net income in the operating activities section and show a cash outflow of $103,000 in financing activities section.

If liabilities increased by $35,000 and owners' equity decreased by $10,000, what was the change in assets? For the direction of the change use the following abbreviations to fill in the blank: increase (I) or decrease (D), or not change (NC)

Assets would increase by $25000.

On February1, Shirin, Inc. paid $30,000 rent on their home office for the months of February, March, and April. Using the following abbreviations to fill in the blanks, indicate whether this transaction would: increase (I), decrease (D), not change (NC) the total of each of the elements of the accounting equation.

Assets wouldNC, liabilitiesNC, owners equity NC

Below are selected data for the Sam Corp. for 2016: A call and repayment of a bond issue $100,000 Payment for purchase of land 250,000 Sale of property, plant, and equipment 800,000 Loss on sale of property, plant, and equipment 300,000 Payment of dividends 40,000 Purchase of treasury stock 60,000 Depreciation Expense 50,000 Sale of a vehicle 80,000 Based on these transactions, the cash flow from financing activities is $[a] net cash [b].

Based on these transactions, the cash flow from financing activities is $200,000 net cash Outflow.

May 1, 2017, Andy Bernard Co. issued 20,000 shares of $5 par common stock in exchange for a building from Jim Halpert, Inc. The stock was selling at $15 per share on May 1, 2017. The net book value of the building on Jim Halpert' balance sheet was $232,000 on the date of acquisition. Andy Bernard's journal entry to record the acquisition of the building is as follows:

Building 300,000 Common stock 100,000 Additional paid-in capital 200,000

On July 1, 2016, Superman Corp, issued $100,000 in 7%, 10-year bonds at a price of 106. Interest is payable semi-annually starting December 31, 2016. The journal entry for Superman's issuance of the bonds was:

Cash 106,000 Bonds payable 100,000 Premium on bonds payable 6,000

What type of account is Dividends and on which financial statement is it reported?

Contra Owners' Equity(XOE) reported on Statement of Retained Earnings(SRE)

On April 4th, MLS Corp. paid for $2,000 of office supplies it purchased on account last month. The journal entry to record this event on April 4th is: Use the following abbreviations for accounts to fill in the blanks: CA = Cash AR = Accounts Receivable AP = Accounts Payable OS = Office Supplies OE = Office Supplies Expense Debit [a] and credit [b].

Debit: Accounts Payable(AP) Credit: Cash(CA)

The issuance of common stock for cash will be treated on the Statement of Cash Flows as an

Financing activity

A company capitalized an expenditure of $50,000. This would

Increase the cost of the asset on the balance sheet by $50,000 and decrease net income by the depreciation on the $50,000

Friskie's Inc. buys some bonds issued by Ken-l-Ration Corporation. This transactions would be classified on Friskie's Statement of Cash Flows as Use the following abbreviations: II for investing cash inflow OI for investing cash outflow IF for financing cash inflow OF for financing cash outflow

Investing cash outflow (OI)

Logan Corp. had the following accounts after adjusting entries have been made on December 31, 2017: 8% debenture bonds payable, due 2017, $80,000 Premium on debenture bonds payable, 5,000 On January 1, 2018, Logan repurchased and retired all of these bonds at 110. As a result of this transaction, Logan will record a [a] of $[b]. Use the following abbreviations in the first blank for the gain or loss on the redemption of the bonds: G for Gain L for Loss

Loss of 3,000

If assets increased by $50,000 and Liabilities decreased by $10,000, how did owner's equity change? For the direction of the change use the following abbreviations to fill in the blank: increase (I) or decrease (D), or not change (NC)

Owner's equity would Increase(I) by $60,000

Which of the following actions would be categorized as an investing activity on a Statement of Cash Flows?

Purchased building for $40,000.

Wolverine, Inc. has the following account balances related to its 2016 operations: Repair Revenues $840,000 Insurance Expense $85,000 Wages and Salaries 240,000 Advertising 1,500 Depreciation Expense 13,000 Unearned Revenue 120,000 Equipment Rentals Revenues 56,000 Accum. Depreciation 25,000 Which of these accounts would be debited in the closing entries?

Repair Revenues and Equipment Rental Revenues only

On the day of declaration, which of the following journal entries should be made?

Retained Earnings Dividends Payable

The following account balances are available for the current assets and current liabilities of Hodor Corp. are available: Net income for the year was $140,000 and depreciation expense was $30,000. There were no gains or losses reported for the year. The 2016 cash flow from operations of Hodor was $[a] net cash [b].

The 2016 cash flow from operations of Hodor was $137,000 net cash Inflow.

Larry Corporation took $100,000 from its checking account to open a money market account. Which of the following is the correct presentation of this transaction on the Statement of Cash Flows?

This transaction does not affect the Statement of Cash Flows.

A company uses the allowance method to recognize bad debts from its customers. The entry required to write off uncollectible accounts will have what effect on the accounting equation? Use the following abbreviations: Use I for Increase Use D for Decrease Use NC for Not change Total Assets will [a], Total Liabilities will [b], Total Owners' Equity will [c].

Total Assets will (NC), Total Liabilities will (NC), Total Owners' Equity will (NC).

A type of capital stock that cannot receive dividends, even if declared, and cannot vote for the board of directors is

Treasury

On January 2, 2017, Theon purchased 10,000 shares of its own $5 par common stock in the market at $10 per share. Theon's January 2, 2017 journal entry for the acquisition of the shares is:

Treasury stock 100,000 Cash 100,000

Below are selected data for the Sam Corp. for 2016: A call and repayment of a bond issue $100,000 Payment for purchase of land 250,000 Sale of property, plant, and equipment 800,000 Loss on sale of property, plant, and equipment 300,000 Payment of dividends 40,000 Purchase of treasury stock 60,000 Depreciation Expense 50,000 Sale of a vehicle 80,000 Based on these transactions, the cash flow from investing activities is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. For the second blank, use the following abbreviations: I for inflow O for outflow

the cash flow from investing activities is: $630,000 net cash: Inflow

The following balance sheet items, listed in alphabetical order, are available from the records of Breaking Bad Company as of December 31, 2015. Total non-current assets is $

$425,000 (Building - accumulated depreciation:building + equipment - accumulated depreciation:equipment + patents)

A company issues 1,000 shares of $1 par common stock at a market price of $17 per share. This transaction will result in additional paid-in capital for common stock of:

$16,000 (1000x17) - (1000x1)

Sensa Corp. has the following stock issued as of December 2015: 5% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock is non-cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Sensa declares dividends of $210,000. How much of this dividend will be distributed to the common stockholders?

$160,000 (10000 x 100 x .05) = 50,000 (210,000 - 50,000) = 160,000

Joffrey Company provides the following information for 2016. The cash balance on January 1, 2016 was $150,000. Joffrey's 2016 net income was $65,000. Further, the accounts receivable increased by $30,000, inventory increased by $20,000, and accounts payable increased by $10,000. Depreciation expense was $15,000. Land was sold for $42,000 cash. Equipment was purchased for $12,000 and a $10,000 dividend was paid. Based on this information Joffrey's ending cash balance at December 31, 2016 is

$210,000

The Danny Company issued $500,000 of 10%, 5-year bonds , interest payable semi-annually. The market rate of interest on the issue date was 8%. The issue price of the bonds was

$540,573

During the month of October, Labrador, Inc. provided $300,000 of services for cash and $500,000 of services on account. Also during October, Labrador's customer paid $400,000 on their accounts. How much should Labrador report as revenues for October?

$800,000 (services for cash + services on account)

The stockholders' equity section of Stark, Inc. is as follows; Preferred stock, 7%, $100 par, 1,000 shares authorized, 300 shares issued and outstanding $40,000 Additional paid-in capital - preferred 5,000 Common stock, $10 par, 15,000 shares authorized, 4,000 shares issued and outstanding 50,000 Additional paid-in capital - common 30,000 Retained Earnings 512,000 Total Stockholders' Equity $637,000 Based only on this information, what was the average issue price of the preferred stock?

150

At January 1, 2017, Jamie Lannister Corp. had a cash balance of $80,000. Lannister's 2017 net income was $67,000. Accounts receivable increased by $15,000, inventory decreased by $12,000 and accounts payable decreased by $10,000. Lannister sold land for $50,000, purchased equipment for $32,000, and paid dividends of $8,000. Depreciation expense for the year was $25,000. Based on this information, the cash balance at December 31, 2017 is

169,000

The following is from Spiderman Inc.'s financial accounts. Purchases $190,000 Transportation-In $11,000 Inventory, January 1st, $25,300 Inventory, December 31st $27,900 Purchase Returns and Allowances $6,200 How much will Spiderman report as its cost of goods sold on its income statement?

192,200 (purchases + Transportation-In + Beginning inventory - ending inventory - Purchase Returns and Allowances)

On July 1, 2017, Nathan Company received a $20,000 promissory note from Dylan Company. The annual interest rate is 8%. Principal and interest are paid in cash at the maturity date of June 30, 2018. If Nathan's fiscal year ends September 30, 2017, the dollar amount of the adjusting entry needed is:

400

On October 1, 2017, Frank Underwood received a 6%, $500,000 note from Claire Barry, a customer. The note is due on March 31, 2018. Frank Underwood's entry on March 31, 2018 to record the payoff of the note would include a debit to Cash for $ [a].

515,000

Assume that on December 31, 2016, Stark Company has outstanding 10,000 shares of $25 par, 6% cumulative, preferred stock and 100,000 shares of $5 par common stock. Stark was unable to declare a dividend in 2014 or 2015 but wants to declare a $100,000 dividend for 2016. The amount of the cash dividend to be paid to the common stockholders in 2016 will be $

55,000

Tom and Jerry invest $15,000 on December 31st of each year in a stock fund that earns 4% per year compounded annually. After 4 years have passed how much would Tom and Jerry expect to have in the stock fund?

63,698

Use the following data to answer the question presented below for Linda Company's preparation of a bank reconciliation on October 31, 2015: Bank Statement balance $12,800 Outstanding checks 8,400 NSF checks 5,200 Service charges 400 Deposits in transit 3,500 Interest earned on checking account 100 What is the adjusted cash balance on October 31, 2015?

7,900

Uptown Crop Science Corp. has the following information about their inventory: During October, Rain Uptown sold 400 units at a price of $20.00. What is the dollar amount of the ending inventory on October 31st, 2016 using the First-in, first-out (FIFO) inventory cost method? (Do Not enter dollar signs.)

8,650

The Snow Corp. issues 1,000 shares of $100 par preferred stock for $180 per share. This transaction will result in additional paid-in capital for preferred stock of:

80,000

Evan Corp. had January 1, 2015 inventories of $55,000, purchases of $48,000, transportation-in of $15,000, and December 31, 2015 inventories of $20,000. The company uses the periodic inventory system. What was the 2015 cost of goods sold for Evan?

98,000

Walter deposits $22,000 at the end of each year for 4 years in a fund that earns 8% compounded annually. How much should Walter have in the fund at the end of the 4th year?

99,134

Heidi Supply reported the following information at December 31, 2015: Common stock, $1 par, 1,000,000 shares authorized $ 700,000 Additional paid in capital—common 670,000 Retained earnings 820,000 Total contributed capital and retained earnings $2,190,000 Less: Treasury stock (21,000 common shares at cost) (210,000) Total stockholders' equity $1,980,000 Heidi had zero additional paid-in capital from treasury stock transactions. On January 1, 2016, Heidi sold 10,000 shares of Treasury stock for $12 per share. The entry to record this transaction would include

A credit to Treasury Stock of $100,000

Which of the following groups of accounts all increase with credits?

Accounts Payable, Accumulated depreciation, Service revenue

Interest earned on a customer loan for which principal and interest have not yet been collected is a type of:

Accrued asset/revenue

Beauty and the Beast Company issued 50, 4% bonds with a $1,000 face value at 94 on January 1, 2017. The term of the bond is 5 years and interest is paid semi-annually. The journal entry for the issuance of the bond is:

Cash 47,000 Discount on bonds payable 3,000 Bonds payable 50,000 (50 x 1000 = 50000) (50000 x 94/100 = 47000)

The Erin Corp. has the following balance sheet accounts for the years ending December 31st.Erin Corp. had a 2017 net income of $69,200. The income statement showed $20,000 of depreciation expense. The land, plant, and equipment were purchased for cash. The common stock and bonds were issued for cash. Erin paid $10,000 in dividends and paid off some short term notes. Cash flow from financing activities is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. Use the following abbreviations for the second blank. I for inflow O for outflow

Cash flow from financing activities is $13000 net cash Outflow

Rick Inc. uses an allowance method to account for their Bad Debts. On September 30th, Rick had a balance in Accounts Receivable of $432,000 and a balance of $25,400 in Allowance for doubtful accounts. During October, Rick decided to write off the account of Carl, Inc. of $3,400. The journal entry to recognize this write-off would be: Use the following abbreviations for account names: CA = Cash AR = Accounts Receivable ADA = Allowance for Doubtful Accounts BD = Bad Debt Expense SR = Sales Revenue Debit [a] and Credit [b].

Debit ADA and Credit .AR

On February 28th, the Alexander Co. recorded $180,000 commissions earned by the sales staff during the month. The staff will be paid the following month. The entry on February 28th would be: Use the following abbreviations for accounts to fill in the blanks: CA = Cash AR = Accounts Receivable CN = Commissions Earned CP = Commissions Payable CE = Commissions Expense Debit [a] and Credit [b] for $[c].

Debit: Commissions Expense(CE) Credit: Commissions Payable (CP) for $180,000

Rose, Inc. purchased equipment on January 1st for $20,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $2,000. Rose uses the straight-line method of depreciation. Rose's journal entry to record depreciation on this equipment on December 31st of that same year would be: Use the following abbreviations for accounts to fill in the blanks: CA = Cash AR = Accounts Receivable EQ = Equipment AD = Accumulated Depreciation AP = Accounts Payable DE = Depreciation Expense Debit [a] Credit [b] for $[c].

Debit: DE Credit: AD for 1800

Mirror Image Inc. repaid the principal of $135,000 on a loan it had received from the bank on a 2-year, 8% note. What is Mirror Image's journal entry to record this transaction?

Debit: Notes payable Credit: Cash

On November 1st, the Pinta Corp. credited a liability account, Unearned Revenues, for $8,800. This sum represents an amount that a customer paid in advance and that will be recognized evenly by Pinta over a 8-month period. Pinta makes annual adjusting entries. The adjusting entry required for Pinta on December 31st would be: Use the following abbreviations for accounts to fill in the blanks: CA = Cash AR = Accounts Receivable AP = Accounts Payable SR = Sales Revenues UR = Unearned Revenues

Debit: UR Credit:SR for $2,200

Which of the following sets of debits and credits are TRUE about the described effects on account balances?

Debits decrease liabilities and Credits decrease assets.

Marjan, Inc. has the following selected balances as of December 31, 2016 8% Debenture bonds payable, due Dec. 2040, $100,000 Premium on debenture bonds payable, $8,000 On January 2, 2017, the bondholders redeemed all of the debentures at 104. Based on this information, Majan should recored a [a] of $[b] on the redemption of the bonds. Use the following abbreviations in the first blank for the gain or loss on the redemption of the bonds: G for Gain L for Loss The second blank is for the amount of the gain or loss.

Gain of 4,000

Which of the following would NOT be added to the net income in the operating activities section of a Statement of cash flows when using the indirect method?

Gain on sale of equipment

An allowance method of accounting for bad debts expense:

Is the required method when the uncollectible amounts are expected to be material.

On March 25, its first day of operations, Ladybug Inc. purchased $1,200 of office supplies. On March 31st, Ladybug had $800 of office supplies on hand. On April 5th Ladybug paid for the supplies it had purchased on account on March 5th. Under accrual accounting which of the following statements about recognizing supplies expense is correct?

Ladybug should recognize $400 of supplies expense in March.

Michael Scott, Inc. issued 9,000 shares of $8 par common stock on December 1, 2015 to acquire land from the David Wallas Company. David had acquired the land in 2002 for $30,000. Michael estimated the land was worth $90,000 on December 1, 2015. The entry to record Michael's transaction would be:

Land 90,000 Common Stock 72,000 Additional Paid-in Capital 18,000

Which of the following journal entries is correct?

Retained Earnings Dividends Payable To record the declaration of a dividend.

On October 1, 2017, Michael Scott Paper Company sold one of its trucks for $30,000. The following information about the truck is provided. Purchased on 1/1/2010 for $148,000 Estimated residual value at acquisition, $4,000 Estimated useful life, 9 years Depreciated using the straight-line method Scott should record a [a] of $ [b] on the sale of the truck. Use the following abbreviations for the first blank: G for gain L for loss

Scott should record a Gain of $ 6000 on the sale of the truck.

The Maryam Co. had the following activities related to painting a Bakery: Sept. 1 Signed a contract to paint the Bakery, $8,000. Sept. 8 Purchased paint, $2,000. Sept. 12 Hired painters, promising to pay $3,900. Sept. 14 Received a deposit of $3,000 on the contract. Sept. 18 The painting was completed to the satisfaction of the Bakery's manager. Sept. 20 Bill mailed to Bakery, $5,000 balance due. Oct. 8 Collected receivable from Bakery, $5,000 and the painters are paid. On an accrual basis, when should Maryam recognize revenue on the contract?

Sept. 18

On January 2, 2017, Theon purchased 10,000 shares of its own $5 par common stock in the market at $10 per share. Theon's January 2, 2017 journal entry for the acquisition of the shares is:

Treasury stock. 100,000 Cash 100,000

Neffie Corporation acquired land by signing a long-term note for $150,000. Which of the following is the correct presentation of this transaction on the Statement of Cash Flows?

This transaction would not affect the Statement of cash flows.

Badger, Inc. has the following account balances related to its 2016 operations:Which of these accounts would be credited in the closing entries?

Wages and Salaries, Depreciation Expense, and Dividends only

Salsa Co. has a 2017 net income of $100,000, the accounts receivable balance declines by $10,000, the inventories increase by $20,000, the accounts payable decreases by $30,000, and unearned revenues increase by $40,000, and notes payable increases by $50,000. Depreciation expense is $60,000. Based on this information, Salsa's 2017 cash flow from operations is $[a] net cash [b]. The first blank is for a dollar amount. Do not use the $ sign or decimals in your answer. Commas are ok. Use the following abbreviations for the second blank. I for inflow O for outflow

cash flow from operations is $160,000 net cash inflow.