final accounting

A company issues bonds with a $100,000 par value, an 8% annual contract rate, semiannual interest payments, and a five-year life. The bonds sold for $107,850. The entry to record the issuance of the bonds will include: A. A credit to premium on bonds payable of $7,850 B. A debit to discount on bonds payable of $7,850 C. a credit to cash of $100,000 D. A credit to bonds payable of $107,850 E. A debit interest expense of $7,850

A. A credit to premium on bonds payable of $7,850

A company sold a tractor that originally cost $85,000 for $20,000 cash. The accumulated depreciation on the tractor was $60,000. The company should recognize:

A. a loss of 38,700

Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method? A.$680 B.$2,320 C.$2,720 D.$600 E.$300

A.680

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was approved at $52,000; the land at $53,000, and the parking lot at $20,000. Land should be recorded in the accounting records with an allocated cost of: A. $48,400 B. $42,400 C.$0 D. $100,000 E. $53,000

B. $42,400

A company purchased a delivery van for 28,000 with the salvage value of 3,000 on October 1,year 1. It has an estimated useful life of 5 years using the straight-line method, how much depreciation expense should the company recognize on December 31, year 1? A.$5,000 B.$1,250 C.$1400 D.$417 E.$2,067

B. 1,250

A machine originally had an estimated useful life of 11 years, but after 3 complete years, decided that the original estimate of useful life should have been 15 years. At that point the remaining cost to be depreciated should be allocated over the remaining: A. 11 years B. 12 years C. 7 years D. 8 years E. 15 years

B. 12 years

On April 12, Hong company agrees to accept a 60-day, 10%, $5,500 note from indigo company to extend the due date on an overdue account payable . What is the journal entry made by Indigo company to record the transaction? A. Debit sales $5,500; credit notes payable $5,500 B. Debit accounts receivable $5,500; credit notes payable $5,500 C. debit notes payable $5,500, credit accounts payable $5,500 D. Debit cash $5,500; credit notes payable $5,500 E. Debit accounts payable $5,500; credit accounts payable $5,500

B. Debit accounts receivable $5,500; credit notes payable $5,500

An asset's book value is $18,400 on December 31, year 5. Assuming the asset is sold on December 31, year 5 for 14,600, the company should record: A. A gain on sale of 3,800 B. A loss on sale of 3,800 C. A gain on sale 13,300 D. A loss on sale of 13,300 E. neither

B. a loss in sale of 3,800

The total cost of an asset minus accumulated depreciation is called: A. historical cost B. book value C. present value D. Current value

B. book value

On April 12, Hong Company agrees to accept a 60-day, 10%, $5,5100 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make when it records payment of the note on the maturity date? (Use 360 days a year.) A. Debit cash $5,151; credit interest expense $77; credit cash $5,100 B. debit notes payable $5,100; debit interest expense $77; credit cash $5,177 C. debit notes payable $5,100; credit expense $51; credit cash $5,151 D. debit notes payable $5,100; credit interest expense $51; credit cash $5,049 E.debit cash $5,151; credit interest revenue $51,; credit notes receivable $5,100

B.debit notes payable $5,100; debit interest expense $77; credit cash $5,177

The following information is available on a depreciable asset: The asset's book value is $66,000 on January 1, year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during year 3 would be: A. $6,600 B. $7,000 C. $7,625 D. $6,100 E. $8,250

C. $7,625

Obligations due after on year (or the company's operating cycle if longer) are reported as: A. current assets B. current liabilities C. long-term liabilities D. operating cycle liabilities E. bills

C. long-term liabilities

Carson company sells sporting tickets in advance for the event for $500,000. The journal entry to record the receipt of cash is: A. debit prepaid sales $500,000; credit sales revenue $500,000 B. debit cash $500,000; Credit accounts payable $500,000 C. Debit cash $500,000; credit unearned revenue $500,000 D. debit cost of sales $500,000; credit inventory $500,000 E. no journal entry is required

C.Debit cash $500,000; credit unearned revenue $500,000

If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the journal entry to record the receipt of cash would consist of: A. debit sales, credit unearned revenue B. debit unearned revenue; credit sales C. debit cash, credit unearned revenue d. debit unearned revenue, credit cash E. debit cash, credit ticket sales payable

C.debit cash, credit unearned revenue

On may 22, Jarrett company borrows $9,400, signing a 90-day, 8%, $9,400 note. What is the journal entry made by Jarrett company to record this transaction? A. debit cash $9,400, credit accounts payable $9,400 B. Debit accounts payable $9,400; credit notes payable $9,400 C. debit cash $9,588; credit notes payable $9,588 D. debit cash $9,400; credit notes payable $9,400 E. debit notes receivable $,9,400; credit cash $,9,400

D. D. debit cash $9,400; credit notes payable $9,400

On May 22, Jarrett Company borrows $9,200 signing a 90-day, 7%, $9,200 note. What is the journal entry needed to record the transaction by Jarrett Company? A. debit notes payable $9,200; credit __ expense $161; credit cash $9,039 B. debit notes payable $9,200; credit cash $9,200 C. debit notes payable $9,200; credit cash $9,361 D. debit notes payable $9,200;debit interest expense $161; credit cash $9,361 E. debit cash $9,361; credit interest revenue $161; credit notes receivable $9,200

D. debit notes payable $9,200;debit interest expense $161; credit cash $9,361

A company purchased a weaving machine for 332,970, The machine has a useful life of 8 years and a salvage value of 18,500. It is estimated that the machine could produce 767,000 bolts of woven fabric over its useful life. In the first year 113,500 bolts were produced. In the second year, production increased to 117,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year? A.$51,009 B.$46,535 C.$49,273 D.$94,710 E. $48,175

E. 48,175

Victory Company purchases equipment at the beginning of the year at a cost of $15,000. The equipment is depreciated using the straight-line method and has a useful life estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first year's depreciation is: A. debit depreciation expense $2,143; accumulated depreciation $2,143 B. Debit depreciation expense $2,000; office equipment $2,000 C. Debit office equipment $2,000, credit accumulated depreciation $2,000 D. debit accumulated depreciation $2,143; credit office equipment $2,143 E. Debit depreciation expense $2,000, credit accumulated depreciation $2,000

E. Debit depreciation expense $2,000, credit accumulated depreciation $2,000

To capitalize an expenditure is to: A. increase to expense account B. decrease an expense account C. increase the revenue account D. decrease an asset account E. Increase an asset account

E. increase an asset account

Which of the following is not a relevant factor in computing depreciation? A. cost B. salvage value C. useful life D. Depreciation method E. market value

E. market value

A company sold equipment that originally cost $280,000 for $140,000 cash. The accumulated depreciation on the equipment was $140,000. The company should recognize a: A. $140,000 loss B. $140,000 gain C. $0 gain or loss D. 70,000 gain E. 70,000 loss

c. $0 gain or loss