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Study Resources (Accounting)

Match the following.   A) goodwill B) accumulated amortization C) betterment D) amortizable cost E) Loss on disposal F) capital cost allowance G) depletion H) double-declining-balance method I) units-of-production method J) property, plant, and equipment assets K) residual value L) amortization expense M) repair N) estimated useful life O) straight-line method 116) Expenditure that increases the capacity or efficiency of an asset or extends its useful.
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121) Prepare journal entries for the following independent situations. a)  The allowance for doubtful accounts has a $525 debit balance prior to adjustment. An aging schedule prepared on December 31 reveals uncollectible accounts of $7,600. b)  The allowance for doubtful accounts has a $500 credit balance prior to adjustment. An aging schedule.
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143) Alpha Company Ltd. purchased equipment on January 1, 2007, for $250,000. The estimated residual value is $25,000 and the estimated useful life is 15 years. Alpha Company Ltd. uses straight-line method to amortize all property, plant and equipment. On January 1, 2010, Alpha Company Ltd. revised the useful life.
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50) Cycle Company Ltd. made a lump-sum purchase of land, buildings, and equipment for $630,000. The appraised market values for the items are respectively, $210,000, $322,000, and $168,000. Cycle Company Ltd. should debit the equipment account for: A) $289,800 B) $189,000 C) $151,200 D) $168,000 51) Jet Tool Company Ltd. paid $184,000 for equipment and.
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33) A critical element of internal control over collections of accounts receivable is: A) the separation of cash-handling and cash-accounting duties B) setting up a petty cash account C) using a cheque-writing machine D) depositing the cash from the cash register on a daily basis 34) All of the following duties should be performed by.
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36) Current liabilities: A) are subtracted from long-term liabilities on the balance sheet B) must be of a known amount C) must be of an estimated amount D) are due within one year or one operating cycle, whichever is longer 37) Which of the following liabilities creates no expense on the part of the company? A).
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Table 9-9 The following information is available for Martin Services for the year ended December 31, 2010.  Accounts receivable Bal. Jan. 1, 2010$20, 500 Allowance for doubtful accounts,   Jan 1, 2010 1,000Cr. Sales Revenue for 2010 (40% on credit)600,000 Bad debt write-offs during 20101,500 Bad debt recoveries during 2010600 Collections on account during 2010  230,000 127) Refer.
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138) On December 31, 2010, Rainbow Appliances has $275,000 in accounts receivable and an allowance account with a debit balance of $320. Current period net credit sales were $780,000, and cash sales were $68,000. a) Rainbow Appliances performs an aging schedule, and the results are summarized below, along with the appropriate.
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110) Refer to Table 10-6. The 2013 amortization expense using the double-declining-balance method is: A) $9,492 B) $7,969 C) $16,875 D) $12,656 111) Referring to Table 10-6, the 2011 amortization expense using the straight-line method is: A) $11,250 B) $16,875 C) $28,125 D) $15,000 112) Refer to Table 10-6. Grant Transport drove the truck 125,000 kilometres in 2011. The amortization.
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140) The accountant for Withers Company is trying to decide which method to use for estimating uncollectible accounts. An aging of accounts receivable revealed $14,325 in uncollectible accounts. Under the percent-of-sales method, bad-debt expense was estimated at $14,780. The balance in allowance for doubtful accounts prior to adjustment was $1,760.
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63) Referring to Table 9-4, under the percent-of-sales method, the balance in allowance for doubtful accounts after adjustment would be: A) $25,500 B) $30,000 C) $34,500 D) $35,000 64) Referring to Table 9-4, under the percent-of-accounts-receivable method, the bad-debt expense for the period would be: A) $33,000 B) $28,500 C) $37,500 D) $30,000 65) Lester Company uses the allowance method.
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70) Referring to Table 10-1, what is the amortization expense in 2010 if Bark uses double-declining-balance amortization? A) $6,875 B) $6,000 C) $13,750 D) $12,000 71) Referring to Table 10-1, what is the amortization expense in 2010 if Bark uses units-of-production amortization? A) $5,400 B) $4,500 C) $6,192 D) $5,156 72) Which of the following statements is true? A) Accumulated amortization.
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21) Payroll deductions withheld from employees become a liability of the employer. 22) Employment Insurance premiums are imposed on both the employer and the employee. 23) The entry to record the employer's contribution for Employment Insurance and CPP includes a debit to Employee Benefits Expense. 24) Canada Pension Plan (CPP) contributions, employment insurance.
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132) Jane Browning purchased a tract of land and contracted with a builder to build an office building on the property. She also engaged other contractors for lighting, fencing, paving, etc. Based on the following transactions, determine the total costs allocated to the land, building, and land improvements accounts. a) Purchased land.
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40) All of the following are property, plant and equipment except: A) land B) prepaid taxes C) a building D) equipment 41) Which of the following assets is never amortized? A) land B) land improvements C) patents D) goodwill 42) All amounts paid to acquire an asset and to get it ready for its intended use are referred to as: A).
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142) The Yummy Candy Company uses the direct write-off method in dealing with uncollectible accounts. State the effects on net income and current assets of each of the following transactions. State your answers as: increase, decrease, or no effect. Transaction Effect on Net Income 1.  Wrote off Linda Taylor's account as uncollectible. 2.  Reinstated.
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46) Referring to Table 11-1, what is the amount of interest expense recorded in 2009? A) $98.63 B) $193.97 C) $101.92 D) $120.00 47) Referring to Table 11-1, the entry on the maturity date would include a: A) credit to interest payable for $98.63 B) debit to interest expense for $98.63 C) credit to note payable for $10,295.89 D).
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146) Jennifer Black, CGA, is the controller of Arc Industries, a large manufacturing company. Company president, Mr. Allen Arc, informed Jennifer that if the company failed to report a "healthy bottom line" this year, the bank would turn down their application for a $1,000,000 loan. The company has suffered losses.
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151) Refer to Table 10-7. Calculate and record the amortization expense for the truck for the year 2010 and 2011 using the double-declining-balance method. 152) Refer to Table 10-7. Calculate and record the amortization expense for the truck for the year 2011 assuming the unit-of-production method is used and that the.
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135) State the effect on net income of each of the following independent transactions. State your answer as: increase, decrease, or no effect. Transaction Effect on Net Income 1.  Prepare adjusting entry for uncollectible accounts. 2.  Write-off a customer's account. 3.  Reinstate a customer's account and collect the balance due. 136) Santagos Industries gathered the following.
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140) For each of the independent situations below, determine the age of the asset in question. a) The balance in the buildings account is $550,000, while the balance sheet shows the book value of buildings at $233,200. The notes to the financial statements indicate that straight-line amortization is used for all.
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Table 8-1   The petty cash fund had the following petty cash ticket: Toner for a printer$42 Freight to deliver goods sold39 Freight on inventory purchased.112 Miscellaneous expense10 Postage expense  25 $228 149) Refer to Table 8-1. Assume that the business has established a petty cash fund in the amount of $250 and that the amount of cash in.
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131) On December 31, 2010, the unadjusted trial balance of Tarzwell Services showed the following balances: Accounts receivable               $200,000 Allowance for doubtful accounts             1,000 Cr. Sales                               700,000 The business has given up trying to collect $5,000 of its accounts receivable but has not yet recorded the write-off entry. The firm does.
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Match the following. A) direct write-off method B) default on a note C) receivable D) promissory note E) creditor F) allowance for doubtful accounts G) allowance method H) direct write-off method I) debtor J) bad-debt expense K) aging-of-accounts method L) maker of the note   108) Cost to the seller of extending credit 109) A method of recording collection losses based on estimates made.
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90) A revision of an estimate that extends the asset's useful life: A) requires restatement of prior years' financial statements B) is ignored until the last year of the asset's life C) decreases amortization expense per year for the remaining years of the asset's life D) increases amortization expense per year for the remaining.
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80) Refer to Table 10-2. Homes Realty Ltd. drove the vehicle 25,000 kilometres in 2010. The amortization expense for 2010 using the units-of-production method is: A) $6,480 B) $8,750 C) $6,200 D) $2,880 81) Refer to Table 10-2. The amortization expense for 2011 using the double-declining-balance method is: A) $6,480 B) $8,750 C) $10,800 D) $2,880 82) Refer to Table.
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1) The accounts receivable account in the general ledger serves as a control account because it summarizes the total of the receivables from all customers. 2) One method of establishing internal control over receivables is to establish a bank lock box. 3) A bookkeeper should not be allowed to handle cash. 4) The.
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73) If the direct write-off method is used for uncollectible receivables, what account is debited when writing off a customer's account? A) accounts receivable B) allowance for doubtful accounts C) bad-debt expense D) sales returns and allowances 74) Under the direct write-off method, the entry to estimate the bad-debt expense includes a: A) No entry is.
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93) Accounts receivable has a debit balance of $5,000, and the allowance for doubtful accounts has a credit balance of $440. A specific account of $160 is written off. What is the amount of net receivables after the write-off? A) $4,720 B) $4,400 C) $4,560 D) $5,000 94) Sports Shop reports net accounts receivables on.
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147) Durham Bike Shop Ltd.'s year end is December 31. Some of the company's transactions are as follows: March 1Paid $190,000 cash to purchase the following assets: MarketEst. Useful Est. Residual AssetValue LifeValue Land$ 88,000- - Building 132,00025 years$14,000 Durham Bike Shop Ltd. plans to use the straight-line amortization method for the building. April 15Purchased a used.
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Table 9-8 The following information is available for Beauchemin Merchandising for the year ended December 31, 2010.  Accounts receivable Bal. Jan. 1, 2010$19, 500 Allowance for doubtful accounts,   Jan 1, 2010 1,040Cr. Sales Revenue for 2010 (30% on credit)520,000 Bad debt write-offs during 20101,690 Collections on account during 2010  159,900 124) Refer to Table 9-8. Assume.
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145) Richter Company, which has a December 31 year end, and uses a periodic inventory system, completed the following transactions during 2009 and 2010: 2009 Oct. 14Sold merchandise to Bruce Company, receiving a 60-day, 9% note for $4,000. Nov. 16Sold merchandise to Marine Company receiving a 72-day, 8% note for $6,500. Dec. 13Received amount due.
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21) Land improvements are not subject to amortization. 22) Leasehold improvements are not subject to amortization. 23) A machine acquired on April 1 would be amortized a total of eight months for the year ended December 31. 24) Canada Revenue Agency specifies the maximum amortization a taxpayer may deduct for income tax purposes. 25).
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137) Beta Construction Ltd. acquired the following property, plant and equipment on January 1, 2010:                                                                                                       Residual Asset CostValueUseful Life Office equipment $ 75,000 $ 5,0005 years Building 200,000 20,00025 years Delivery equipment250,000 25,00010 years Beta Construction Ltd. amortizes the office equipment using the straight-line method, the building using the double-declining-balance.
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