Accounting Final Exam Quiz Questions (9-10)

$10,980

Avalon Industries buys equipment for $122,000, expects to use it for ten years, and then sell it for $12,200. Using the straight-line method, the company should report annual depreciation for the equipment of:

$232,000

Holly, Inc. has a building that originally cost $440,000. Holly expects to be able to sell the facility for $208,000 at the end of its useful life. The balance of the related Accumulated Depreciation account is $119,000. The depreciable cost of the facility is:

$208,800

Marshall Company purchases a machine for $640,000. The machine has an estimated residual value of $60,000. The company expects the machine to produce two million units. The machine is used to make 720,000 units during the current period. If the units-of-production method is used, the depreciation expense for this period is:

$525,525

Maxwell Manufacturing issued $490,000, 10-year, 9% bonds at 107.25. What is the issue price of these bonds?

$21,200

Pebble Beach Co. buys a piece of equipment for $53,000. The equipment has a useful life of five years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment's useful life?

$484.00

The total amount of interest that will be paid on a four-month, $13,200, 11% note payable equals:

Analyze (Monthly adjustments)

What is the 1st step of the accounting cycle?

Record (Adjusting Entries)

What is the 2nd step of the accounting cycle?

Summarize in T-Accounts (Adjusted)

What is the 3rd step of the accounting cycle?

Prepare Trial Balance

What is the 4th step of the accounting cycle?

Report Financial Statements

What is the 5th step of the accounting cycle?

The bond sold at a price of 106.00, implying a premium of $13,800.

Your company sells $230,000 of bonds for an issue price of $243,800. Which of the following statements is correct?

$48,000

Your company sells $48,000 of one-year, 15% bonds for an issue price of $43,000. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of:

The bond sold at a price of 96.00, implying a discount of $2,000.

Your company sells $50,000 of bonds for an issue price of $48,000. Which of the following statements is correct?

$45

Zorn Inc. makes a sale for $450. The company is required to collect sales taxes amounting to 10%. What is the amount that will be credited to the Sales Tax Payable account?