accounting final ch 10 - 17

Chapter 11 On January​ 1, 2016​, a business borrowed $11,000 on a​ five-year, 55​% note payable. At December​ 31, 2016​, the business should record A. interest payable of $550. B. cash payment of $11,000. C. note receivable of $11,000. D. nothing.​ (The note is already on the​ books.)

A. interest payable of $550.

Chapter 11 Known liabilities of estimated amounts are A. reported on the balance sheet. B. ignored.​ (Record them when​ paid.) C. reported on the income statement. D. reported only in the notes to the financial statements.

A. reported on the balance sheet.

Chapter 14 A bond that matures in installments at regular intervals is a A. serial bond. Your answer is correct.B. periodic bond. C. terminal bond. D. term bond.

A. serial bond.

Chapter 17 Pacific Corporation reported the following financial​ statements: The company has 2,600 shares of common stock outstanding. What is Pacific​'s earnings per​ share?​ (Round the earnings per share to two decimal​ places, X.XX.) Review Only LOADING... Click the icon to see the Worked Solution. A. ​$5.60 Your answer is correct.B. 2.06 times C. ​$1.62 D. ​$6.51

A. ​$5.60

Chapter 15 Which of the following investments is most likely classified as a​ held-to-maturity investment? A. ​10-year bonds Your answer is correct.B. ​80% stock ownership in a subsidiary C. ​100% ownership in voting stock of a supplier D. None of the above

A. ​10-year bonds

Chapter 10 AnAn United Trans ServiceUnited Trans Service jet costs $28,000,000 and is expected to fly 200,000,000 miles during its 12​-year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels 32,000,000 miles the first​ year, how much depreciation should United Trans Service record under the​ units-of-production method? ​(Round the depreciation per unit to two decimal​ places.) A. $4,480,000 B. $2,333,333 C. $4,666,666 D. Cannot be determined from the data given

A. $4,480,000

Chapter 10 How should you record a capital​ expenditure? A. Debit an asset B. Debit capital C. Debit a liability D. Debit an expense

A. Debit an asset

Chapter 10 Which method almost always produces the most depreciation in the first​ year? A. ​Double-declining-balance ​Straight-line C. ​Units-of-production D. All produce the same depreciation in the first year.

A. Double-declining-balance

Chapter 15 Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent​ 5% of the voting stock of Pale Co. How would the investment be​ classified? A. ​Held-to-maturity investment B. Trading investment Your answer is correct.C. Significant interest investment D. Controlling interest investment

B. Trading investment

Chapter 14 Americo signed a 15​-year note payable on January​ 1, 2016​, of $1,500,000. The note requires annual principal payments each December 31 of $100,000 plus interest at 8​%. The entry to record the annual payment on December​ 31, 2020​, includes A. a debit to Interest Expense for $120,000. B. a debit to Interest Expense for $88,000. Your answer is correct.C. a credit to Notes Payable for $100,000. D. a credit to Cash of $220,000.

B. a debit to Interest Expense for $88,000.

Chapter 12 Partner withdrawals A. decrease partnership net income. B. decrease partnership capital. C. increase partnership liabilities. D. increase partnership capital.

B. decrease partnership capital

Chapter 13 Assume that a company paid $8 per share to purchase 2,000 shares of its $3 par common stock as treasury stock. A. increased total equity by $6,000. B. decreased total equity by $16,000. Your answer is correct.C. increased total equity by $16,000. D. decreased total equity by $6,000.

B. decreased total equity by $16,000.

Chapter 15 Putnam Co. purchased an​ available-for-sale stock investment on October 4 of the current year for $38,000. The market value of the stock investment at​ year-end is $34,500. What value will be reported in net income for the​ adjustment, if​ any? A. $34,500 B. ​$0 Your answer is correct.C. $(3,500) D. Not enough information is given to determine the amount included in net income.

B. ​$0

Chapter 10 Which method is used to compute​ depletion? A. ​Straight-line method B. ​Units-of-production method C. ​Double-declining-balance method D. Depletion method

B. Units-of-production method

​Chapter 14 Daniels's bonds payable carry a stated interest rate of​ 5%, and the market rate of interest is​ 7%. The price of the​ Daniels's bonds will be at A. face value. B. par value. C. a discount. Your answer is correct.D. a premium.

C. a discount.

Chapter 15 If Intervale Railway invests​ $100,000 in​ 5% bonds at face value that the company intends to hold until the bond maturity​ date, the interest revenue recognized when each semiannual interest payment is received would be recorded as a A. debit to Dividend​ Revenue, $2,500. B. credit to​ Cash, $2,500. C. credit to Interest​ Revenue, $2,500 Your answer is correct.D. debit to​ Long-term Investmentslong dash—​Held-to-Maturity, ​$2,500.

C. credit to Interest​ Revenue, $2,500

Chapter 15 If a company owns​ 25% of the voting stock of Pink​ Co., dividends received will be A. credited to Dividend Revenue. B. credited to Cash. C. credited to​ Long-term Investments dash—Pink Co. Your answer is correct.D. debited to​ Long-term Investmentslong dash—Pink Co.

C. credited to​ Long-term Investments —Pink Co.

Chapter 16 Operating activities are most closely related to A. dividends and treasury stock. B. ​long-term liabilities and​ stockholders' equity. C. current assets and current liabilities. Your answer is correct.D. ​long-term assets.

C. current assets and current liabilities

Chapter 13 A small stock dividend A. increases Retained Earnings. B. decreases common stock. C. has no effect on total equity. Your answer is correct.D. Items​ a, b, and c are correct.

C. has no effect on total equity.

Chapter 17 Pacific Corporation reported the following financial​ statements: LOADING... ​(Click the icon to view the financial​ statements.) Pacific​'s rate of return on common​ stockholders' equity can be described as ​(Assume a rate of return on common​ stockholders' equity of​ 15% -​ 20% year after year is considered good in most​ industries.) A. normal. B. weak. C. strong. Your answer is correct. D. average.

C. strong.

Chapter 13 A​ company's own stock that it has issued and repurchased is called A. dividend stock. B. outstanding stock. C. treasury stock. Your answer is correct.D. issued stock.

C. treasury stock.

Chapter 16 Mountain Water Corp. issued common stock of​ $28,000 to pay off​ long-term notes payable of ​$28,000. In what​ section(s) would these transactions be​ recorded? A. Financing activities cash​ receipt, $28,000 B. Financing activities payment of​ note, $(28,000) C. ​Non-cash investing and financing​ activities, $28,000 Your answer is correct.D. Both a and b are correct.

C. ​Non-cash investing and financing​ activities, $28,000

Chapter 16 The main categories of cash flow activities are A. direct and indirect. B. ​non-cash investing and financing. C. ​operating, investing, and financing. Your answer is correct.D. current and​ long-term

C. ​operating, investing, and financing.

Chapter 13 The two basic sources of​ stockholders' equity are A. retained earnings and dividends. B. preferred and common. C. ​paid-in capital and retained earnings. Your answer is correct.D. assets and equity.

C. ​paid-in capital and retained earnings.

Chapter 10 Which cost is not recorded as part of the cost of a​ building? A. Concrete for the​ building's foundation B. Real estate commission paid to buy the building C. Annual building maintenance Your answer is correct. D. Construction materials and labor

C. Annual building maintenance

Chapter 13 Corporation has the following​ data: Net income $16,540 Preferred dividends 8,800 Average common stockholders' equity 86,000 BrookeBrooke​'s rate of return on common​ stockholders' equity is A. 19​% B. 53​% C. 29​% D. 9​%

D. 9​%

Chapter 11 The employer is responsible for which of the following payroll​ taxes? A. Federal and state unemployment taxes B. 6.2​% FICAlong dash—OASDI tax C. 1.45​% FICAlong dash—Medicare tax D. All of the above

D. All of the above

Chapter 12 Which characteristic identifies a limited liability​ company? A. Members have limited personal liability. B. Members can actively participate in the management of the business. C. The LLC can elect not to pay business income tax. D. All of the above

D. All of the above

Chapter 12 The book value of the​ non-cash assets of the Upper HTP partnership is $ $175,000. In​ liquidation, the partnership sells the​ non-cash assets for $235,000. Partners H​T​P split profits equally. How should the partnership account for the sale of the​ non-cash assets? A. Debit cash for $235,000 B. Credit the​ non-cash assets for $175,000 C. Increase each of the​ partners' capital accounts by $20,000 D. All of the above

D. All of the above

Chapter 12 Ackers and Becker form a partnership. Ackers contributes $20,000 cash and merchandise inventory with a current market value of $50,000. Becker contributes $6,500 in cash and land with a current market value of $18,000 ​(cost of $3,000​). Which of the following is​ correct? A. Becker​, Capital is credited for $9,500. B. Becker receives a bonus of $18,000 from Ackers. C. Becker​, Capital is debited for $9,500. D. Becker​, Capital is credited for $24,500.

D. Becker​, Capital is credited for $24,500.

Chapter 17 Freedom Corporation reported the following financial​ statements: Vertical analysis of Freedom​'s balance sheet for 2017 would report A. a 19​% increase in Cash. B. a current ratio of 1.00. C. inventory turnover of 8 times. D. Cash as 9.42​% of total assets.

D. Cash as 9.42​% of total assets.

Chapter 17 Liberty Corporation reported the following financial​ statements: Which statement best describes Liberty​'s ​acid-test ratio for 2017​? A Less than 1 Your answer is correct. B. Equal to 1 C. Greater than 1 D. None of the above

A Less than 1

Chapter 13 Suppose Home Value FurnitureHome Value Furniture issued 200,000 shares of &0.05 par common stock at $5 per share. Which journal entry correctly records the issuance of this​ stock? A. Cash 1,000,000 Common Stock—$0.05 Par Value 10,000 Paid-In Capital in Excess of Par-Common 990,000 Your answer is correct.B. Common Stock—$0.05 Par Value 1,000,000 Cash 1,000,000 C. Cash 1,000,000 Common Stock—$0.05 Par Value 1,000,000 D. Common Stock—$0.05 Par Value 1,000,000 Cash 10,000 Paid-In Capital in Excess of Par-Common 990,000

A. Cash 1,000,000 Common Stock—$0.05 Par Value 10,000 Paid-In Capital in Excess of Par-Common 990,000

Chapter 12 The partnership of Williams and Davis splits profits 3 divided by 3/5 to Williams and 2 divided by 2/5 to Davis. There is no provision for losses. The partnership has a net loss of $250,000. What is Davis​'s share of the​ loss? A. $100,000 B. $250,000 C. $150,000 D. Cannot be determined because the​ loss-sharing ratio is not given.

A. $100,000

Chapter 15 Haven Co. purchased a trading investment on December 11 of the current year for $55,000. The market value of the stock investment at​ year-end is $59,500. What value will be reported in net income for the​ adjustment, if​ any? A. $4,500 Your answer is correct.B. $(4,500) C. $ 55,000 D. $ 59,500

A. $4,500

Chapter 13 Winston Corporation has 11,000 shares of 88​%, $5 par cumulative preferred stock and 51,000 shares of common stock outstanding. Winston declared no dividends in 2015 and had no dividends in arrears prior to 2015. In 2016​, Winston declares a total dividend of $52,000. How much of the dividends go to the common​ stockholders? A. $43,200 Your answer is correct.B. $52,000 C. $47,600 D. ​None; it all goes to preferred stockholders.

A. $43,200

Chapter 14 Alan Smith Fitness Gym has $700,000 of 20​-year bonds payable outstanding. These bonds had a discount of $42,000 at​ issuance, which was 10 years ago. The company uses the​ straight-line amortization method. The current carrying amount of these bonds payable is A. $679,000. Your answer is correct.B. $721,000. C. $700,000. D. $658,000.

A. $679,000.

Chapter 11 and Associates reported the following amounts on its 20162016 income​ statement: Year Ended December 31, 2016 Net income $22,950 Income tax expense 6,600 Interest expense 3,000 What was McDaniel​'s ​times-interest-earned ratio for 2016? A. 10.85 B. 8.65 C. 7.65 D. 9.85

A. 10.85

Chapter 17 Trust Corporation reported the following financial​ statements: Assume all sales are on credit. During 2017​, Trust​'s​ days' sales in receivables ratio was​ (amounts rounded). ​(Use a​ 365-day year. Round interim calculations to three decimal places and round your final answer to the nearest whole​ number.) A. 24 days. Your answer is correct B. 27 days. C. 25 days. D. 23 days.

A. 24 days.

Chapter 11 Jade Larson Antiques owes​ $20,000 on a truck purchased for use in the business. Assume the company makes timely principal payments of​ $5,000 each year at December 31 plus interest at​ 8%. Which of the following is​ true? A. After the first payment is​ made, $5,000 would be shown as the current portion due on the​ long-term note. B. After the first payment is​ made, the company owes​ $15,000 plus three​ years' interest. C. After the first​ payment, $15,000 would be shown as a​ long-term liability. D. Just before the last payment is​ made, $5,000 will appear as a​ long-term liability on the balance sheet.

A. After the first payment is​ made, $5,000 would be shown as the current portion due on the​ long-term note.

Chapter 14 Paragon, Inc.​'s trial balance shows$100,000 face value of bonds with a discount balance of $2,500. The bonds mature in 10 years. How will the bonds be presented on the balance​ sheet? A. Bonds payable $97,500 ​(net of $2,500 ​discount) will be listed as a​ long-term liability. Your answer is correct. B. Bonds payable $100,000 will be listed as a​ long-term liability. A $2,500 discount on bonds payable will be listed as a contra current liability. C. Bonds payable $100,000 will be listed as a​ long-term liability. A $2,500 discount on bonds payable will be listed as a current liability. D. Bonds payable $100,000 will be listed as a​ long-term liability.

A. Bonds payable $97,500 ​(net of $2,500 ​discount) will be listed as a​ long-term liability. Your answer is correct.

Chapter 12 Steve and Montel admit Magean to their​ partnership, with Magean paying $52,000 more than the book value of her equity in the new business. Steve and Montel have no formal​ profit-and-loss-sharing agreement. What effect does admitting Magean to the partnership have on the capital balances of Steve and Montel question mark Montel? A. Credit the SteveSteve and Montel capital accounts for $26,000 each. B. Cannot be determined because​ there's no​ profit-and-loss sharing ratio. C. Credit the SteveSteve and Montel capital accounts for $52,000 each. D. Debit the SteveSteve and Montel capital accounts for $26,000 each.

A. Credit the SteveSteve and Montel capital accounts for $26,000 each.

Chapter 16 If accrued liabilities increased during the​ year, which of the following is correct when using a spreadsheet to complete the statement of cash flows​ (indirect method)? A. Increase in Accrued Liabilities would be debited Your answer is correct.B. Accrued Liabilities would be debited C. Increase in Accrued Liabilities would be credited D. None of the above is correct.

A. Increase in Accrued Liabilities would be debited

Chapter 11 Swell Company has a lawsuit pending from a customer claiming damages of​ $100,000. Swell's attorney advises that the likelihood the customer will win is remote. GAAP requires at a minimum that this contingent liability be A. No disclosure is required. B. recorded as a journal​ entry, as well as disclosed in the footnotes. C. disclosed in the footnotes. D. disclosed in the​ footnotes, with ranges of potential loss.

A. No disclosure is required.

Chapter 12 Which financial statement shows the changes in each​ partner's capital account for a specific period of​ time? A. Statement of​ Partners' Equity B. Income Statement C. Statement of​ Owner's Equity D. Balance Sheet

A. Statement of​ Partners' Equity

Chapter 16 Hobby Gas Station earned net income of $55,000 after deducting depreciation of $6,000 and all other expenses. Current assets decreased by $5,000​, and current liabilities increased by $7,000. How much was Hobby Gas Station's cash provided by operating activities​ (indirect method)? A. $37,000 B. $73,000 Your answer is correct.C. $47,000 D. $63,000

B. $73,000

Chapter 15 Amini Company reported the following information on its financial statements Total Assets, December 31, 2016 $460,000 Total Assets, December 31, 2017 620,000 For Year Ended December 31, 2017: Interest Expense $18,000 Net Income 90,000 What is Amini​'s rate of return on total​ assets? A. 17.4​% B. 20.0​% C. 23.5​% D. None of the above

B. 20.0​%

Chapter 17 Liberty Corporation reported the following financial​ statements: Liberty​'s inventory turnover during 2017 was​ (amounts rounded) A. 6 times. B. 5 times. Your answer is correct. C. 7 times. D. not determinable from the data given.

B. 5 times.

Chapter 15 Best Appliances owns​ 90% of the voting stock of​ Wratchet, Inc. Which of the following is​ true? A. The financial statements of Best would be consolidated into Wratchet. B. Best would be considered the parent entity. Your answer is correct.C. Wratchet would be considered the parent entity. D. Both a and c are correct.

B. Best would be considered the parent entity.

Chapter 16 Which item does not appear on a statement of cash flows prepared by the indirect​ method? A. Gain on sale of land B. Collections from customers Your answer is correct.C. Net income D. Depreciation expense

B. Collections from customers

Chapter 16 The Plant Assets account and Accumulated Depreciation—Plant Assets account of Vacation Club show the​ following: Vacation Club sold plant assets at a $13,000 loss. Where on the statement of cash flows should Vacation Club report the sale of plant​ assets? How much should the business report for the​ sale? A. Investing cash flows—cash receipt of$46,000 B. Investing cash flows—cash receipt of $33,000 Your answer is correct.C. Investing cash flows—cash receipt of $59,000 D. Financing cash flows—cash receipt of $ 46,000

B. Investing cash flows—cash receipt of $33,000

Chapter 12 Allen retires from the partnership of James​, Nelson​, and Allen. The partners share profits and losses in the ratio of 3​:2​:5​, respectively. AllenAllen​'s capital balance is $17,000​, and he receives $22,000 in final settlement. What is the effect on the capital accounts of James and Nelson​? A. James​' capital decreases by $5,000. B. James​' capital decreases by $3,000. C. Nelson​'s capital decreases by $5,000. D. James capital increases by $3,000.

B. James​' capital decreases by $3,000.

Chapter 12 Which characteristic identifies a general​ partnership? A. Unlimited life B. No business income tax C. Limited personal liability D. All of the above

B. No business income tax

Chapter 13 Conner Health Foods has 20,000 shares of $3 par common stock​ outstanding, which were issued at $10 per share. Conner also has a deficit balance in Retained Earnings of $81,000. How much is Conner​'s total​ stockholders' equity? A. $60,000 B. $200,000 C. $119,000 Your answer is correct.D. $ 281,000

C. $119,000

Chapter 11 An employee has​ year-to-date earnings of $114,500. The​ employee's gross pay for the next pay period is $6,300. If the FICAlong dash—OASDI is 6.26.2​% and the wage base is $117,000​, how much--FICAlong dash—OASDI tax will be withheld from the​ employee's pay?​ (Answer is rounded to whole​ dollar.) A. $265 B. $91 C. $155 D. $ 391

C. $155

Chapter 14 Sarah Jackson Antiques issued its 8​%, 20​-year bonds payable at a price of $266,940 ​(face value is $300,000​). The company uses the​ straight-line amortization method for the bond discount or premium. Interest expense for each year is ​(Round your answer to the nearest whole​ dollar.) A. $24,000. B. $21,355. C. $25,653. Your answer is correct.D. $22,347.

C. $25,653.

Chapter 11 Belair Elecric ​(BEBE​) owed Estimated Warranty Payable of $1,400 at the end of 2015. During 2016​, BEBE made sales of $130,000 and expects product warranties to cost the company 55​% of the sales. During 2016​, BEBE paid $2,800 for warranties. What is BEBE​'s Estimated Warranty Payable at the end of 2016​? A. $2,800 B. $7,900 C. $5,100 D. $ 6,500

C. $5,100

Chapter 16 Bakugon Furniture Center had accounts receivable of $28,000 at the beginning of the year and $57,000 at​ year-end. Revenue for the year totaled $113,000. How much cash did the business collect from​ customers? A. $56,000 B. $142,000 C. $84,000 Your answer is correct.D. $ 113,000

C. $84,000

Chapter 15 A company invested​ $45,000 in Yale Co. stock. The investment represented​ 5% of the voting stock of Yale Co. If the Yale Co. stock investment paid​ dividends, what account would be​ credited? A. Interest Revenue B. ​Long-term Investmentslong dash—​Available-for-Sale C. Dividend Revenue Your answer is correct.D. Cash

C. Dividend Revenue

Chapter 13 Which characteristic of a corporation is a​ disadvantage? A. Mutual agency B. Limited liability C. Double taxation Your answer is correct.D. None are disadvantages.

C. Double taxation

Chapter 15 Bendi Corp. purchased​ 1,000 shares of Kala Corp. for​ $16 per share. The investment represents​ 5% ownership, and Bendi holds the investment as an​ available-for-sale investment. The fair value at​ year-end is​ $15 per share. Assuming no other transactions occurred where would the​ $1 per share difference be reported on the​ year-end financial​ statements? A. Retained Earnings B. Unrealized Holding Gain—AFS C. Other Comprehensive Income Your answer is correct.D. Both b and c are correct.

C. Other Comprehensive Income

Chapter 11 A company sells $140,000 ​(selling price) of goods and collects sales tax of 66​%. What current liability does the sale​ create? A. Sales revenue of $148,400 B. Unearned revenue of $8,400 C. Sales tax payable of $8,400 D. ​None; the company collected cash up front.

C. Sales tax payable of $8,400

The debt to equity ratio is calculated as A. Total liabilities​ / Total assets. B. Total assets​ / Total equity. C. Total liabilities​ / Total equity. Your answer is correct.D. Current liabilities​ / Total equity.

C. Total liabilities​ / Total equity.

Chapter 12 CharlesCharles pays $ 30 comma 000$30,000 to StevenSteven to acquire StevenSteven​'s $ 15 comma 000$15,000 interest in a partnership. The journal entry to record this transaction is Date Accounts and Explanation Debit Credit A. Charles, Capital 30,000 Steven, Capital 30,000 B. Charles, Capital 15,000 Steven, Capital 15,000 C. Steven, Capital 30,000 Charles, Capital 30,000 D. Steven, Capital 15,000 Charles, Capital 15,000

D. Steven, Capital 15,000 Charles, Capital 15,000

Chapter 16 Systern​, Inc. expects net cash flow from operating activities to be $100,000​, and the company plans purchases of equipment of $73,000 and repurchases of stock of $16,000. What is Systern's free cash​ flow? A. $100,000 B. $73,000 C. $11,000 D. $ 27,000

D. $ 27,000

Chapter 14 Trent Robinson wishes to have $70,000 in seven years. If he can earn annual interest of 2​%, how much must he invest​ today? A. $65,310 B. $29,200 C. $80,430 D. $ 60,970

D. $ 60,970

Chapter 10 ExclusiveExclusive Company reported beginning and ending total assets of $28,000 and $30,000​, respectively. Its net sales for the year were $27,840. What was ExclusiveExclusive​'s asset turnover​ ratio? A. 0.99 B. 1.04 C. 0.93 D. 0.96

D. 0.96

Chapter 17 Trust Corporation reported the following financial​ statements: LOADING... ​(Click the icon to view the financial​ statements.) Which measure expresses Trust​'s ​times-interest-earned ratio?​ (amounts rounded) Review Only LOADING... Click the icon to see the Worked Solution. A. 26.8​% B. 54 times C. 45.3​% D. 64 times

D. 64 times

Chapter 14 Vasquez issued a​ $400,000 face​ value, 8%,​ 20-year bond at 95. Which of the following is the correct journal entry to record the retirement of the bond at​ maturity? A. Date Accounts and Explanation Debit Credit Cash 380,000 Bonds Payable 380,000 B. Date Accounts and Explanation Debit Credit Cash 400,000 Bonds Payable 400,000 C. Date Accounts and Explanation Debit Credit Bonds Payable 380,000 Cash 380,000 D. Date Accounts and Explanation Debit Credit Bonds Payable 400,000 Cash 400,000

D. Date Accounts and Explanation Debit Credit Bonds Payable 400,000 Cash 400,000

Chapter 14 SandersSanders Corporation issued $ 480 comma 000$480,000 of 44​%, ​10-year bonds payable at a price of 9494. The market interest rate at the date of issuance was 55​%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the​ effective-interest amortization method is Review Only LOADING... Click the icon to see the Worked Solution. A. Date Accounts and Explanation Debit Credit Interest Expense 10,752 Discount on Bonds Payable 1,152 Cash 9,600 B. Date Accounts and Explanation Debit Credit Interest Expense 13,680 Discount on Bonds Payable 1,680 Cash 12,000 C. Date Accounts and Explanation Debit Credit Interest Expense 13,152 Discount on Bonds Payable 1,152 Cash 12,000 D. Date Accounts and Explanation Debit Credit Interest Expense 11,280 Discount on Bonds Payable 1,680 Cash 9,600

D. Date Accounts and Explanation Debit Credit Interest Expense 11,280 Discount on Bonds Payable 1,680 Cash 9,600

Chapter 10 A truck costs $70,000 when new and has accumulated depreciation of $60,000. Suppose FrankFrank Towing exchanges the truck for a new truck. The new truck has a market value of $69,000​, and FrankFrank pays cash of $45,000. Assume the exchange has commercial substance. What is the result of this​ exchange A. No gain or loss B. Gain of $59,000 C. Loss of $14,000 D. Gain of $ 14,000

D. Gain of $ 14,000

Chapter 10 Which intangible asset is recorded only as part of the acquisition of another​ company? A. Copyright B. Patent C. Franchise D. Goodwill

D. Goodwill

Chapter 17 Pacific Corporation reported the following financial​ statements: LOADING... ​(Click the icon to view the financial​ statements.) Horizontal analysis of Pacific​'s balance sheet for 2017 would report A. Cash as 9.23​% of total assets. B. a current ratio of 1.05. C. inventory turnover of 8 times. D. a 19​% increase in Cash and Cash Equivalents.

D. a 19​% increase in Cash and Cash Equivalents.

Chapter 11 Corporation expects to pay a 44​% bonus on net income after deducting the bonus. Assume the corporation reports net income of $153,920 before the calculation of the bonus. The journal entry to record the accrued bonus includes A. a credit to​ Cash, $6,157. B. a debit to Employee Bonus​ Payable, $5,920. C. a debit to Employee Bonus​ Expense, $6,157. D. a credit to Employee Bonus​ Payable,$5,920.

D. a credit to Employee Bonus​ Payable,$5,920.

Chapter 13 Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at A. its book value. B. the par value of the stock given. C. a value assigned by the board of directors. D. its market value.

D. its market value.

Chapter 17 In order for an item to be reported in the extraordinary items section of the income​ statement, it must be A. unusual. B. infrequent. C. unusual or infrequent. D. unusual and infrequent.

D. unusual and infrequent.

Chapter 17 What part of the​ Liberty's annual report is written by the company and could present a biased view of financial conditions and​ results? A. ​Auditor's Report B. Balance Sheet C. Income Statement D. ​Management's Discussion and Analysis of Financial Condition and Results of Operations​ (MD&A)

D. ​Management's Discussion and Analysis of Financial Condition and Results of Operations​ (MD&A)

Chapter 16 The purposes of the statement of cash flows are to A. predict future cash flows. B. determine ability to pay debts and dividends. C. evaluate management decisions. D. All of the above

D. All of the above

Chapter 10 A copy machine cost $43,000 when new and has accumulated depreciation of $29,000. Suppose ABC Printing junks this​ machine, receiving nothing. What is the result of the disposal​ transaction A. No gain or loss B. Loss of $26,000 C. Gain of $14,000 D. Loss of $14,000

D. Loss of $14,000

Chapter 10 A copy machine cost $39,000 when new and has accumulated depreciation of $33,000. Suppose Print and Photo CenterPrint and Photo Center sold the machine for $6,000. What is the result of this disposal​ transaction? A. Loss of $6,000 B. Loss of $33,000 C. Gain of $6,000 D. No gain or loss

D. No gain or loss