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Study Resources (Accounting)

53) On January 1, 2012, a company buys equipment for $10,000.  It has estimated residual value of $1,000, and an estimated life of 5 years.  Assume the company uses double-declining-balance depreciation. Please complete the depreciation schedule below. Depreciation for the Year Date Asset Cost Depreciable Cost Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 1-1- 2012 12-31- 2012 12-31- 2013 12-31- 2014 12-31- 2015 12-31- 2016 54) Pallmall Company has a.
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21) The decline in value of a copyright is accounted for by: A) depreciation. B) amortization. C) depletion. D) deterioration. 22) Which of the following assets is NOT an intangible asset? A) Patent B) Goodwill C) Building D) Trademark 23) The type of intangible asset related to the rights to original music and media is a: A) goodwill. B) trademark. C) copyright. D) patent. 24).
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5) Which of the following is the expense resulting from a decline in the utility of natural resource? A) Depletion B) Amortization C) Depreciation D) Obsolescence 6) Which of the following accounting methods is the method used to compute depletion? A) Straight-line B) Declining-balance C) Units-of-production D) First-In, First-Out 7) Navajo Mining Company purchased a mine in 2013 for $3,400,000. .
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9) Warranty expense would be included in the operating expense section of the income statement. 10) A certain contingent liability was evaluated at year-end, and considered to have a remote possibility of becoming an actual liability.  If the accountant decided NOT to report it on the balance sheet or in the.
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Learning Objective 11-1 1) The current portion of notes payable is the principal amount that will be paid within one year of the balance sheet date. 2) The current portion of notes payable must be reported on the balance sheet combined with the long-term portion under long-term liabilities. 3) When a long-term.
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Learning Objective 10-1 1) If an installment note payable has installments due within a year, the entire note is treated as a current liability. 2) Amounts owed for products or services purchased on account are contingent liabilities. 3) Unearned revenue is an obligation to provide goods or services to the customer. 4) Notes.
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42) Charter Services sells a service plan for commercial computer maintenance.  The price is $1,200 per year, paid in advance.  On December 1, 2013, Charter sells a service plan to a new customer for cash.  Please provide the journal entry to record the adjustment needed on December 31, 2013. Learning Objective.
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17) The reason people buy bonds is to: A) earn interest. B) reduce their income taxes. C) save money. D) receive dividend payments. 18) The interest rate on which cash payments to bondholders are based is the: A) market rate. B) discount rate. C) stated rate. D) amortization rate. 19) Which of the following describes a term bond? A) A bond.
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11) Which of the following is a liability created when a company receives cash for services to be provided in the future? A) Unearned revenue B) Accrued liability C) Service revenue D) Estimated warranty payable 12) Sales revenue for a sporting goods store amounted to $215,000 for the current period.  All sales are on account.
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29) Franconia Sales offers warranties on all their electronic goods.  Warranty expense is estimated at 2% of sales revenue.  In 2013, Franconia had $500,000 of sales.  In the same year, Franconia paid out $7,500 of warranty payments.  Which of the following is the entry needed to record the disbursement of.
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51) On January 1, 2012, a company buys a truck for $42,000 cash.  It has estimated residual value of $2,000, and an estimated life of 4 years, or 200,000 miles.  Assume the company uses straight-line depreciation.  Please complete the depreciation schedule below. Depreciation for the Year Date Asset Cost Depreciable Cost Depreciation Rate Depreciation Expense Accumulated Depreciation Book.
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38) Franconia Sales offers warranties on all their electronic goods.  Warranty expense is estimated at 2% of sales revenue.  In 2013, Franconia had $500,000 of sales.  In the same year, Franconia paid out $7,500 of warranty payments.  Please provide the journal entry to record the warranty expense. 39) Franconia Sales offers.
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14) Which of the following depreciation methods allocates an equal amount of depreciation to each year? A) Units-of-production B) Straight-line C) Declining-balance D) Double-declining-balance 15) Which of the following depreciation methods allocates a fixed amount of depreciation to miles driven, hours used, or some other measure of the asset's utilization? A) Straight-line B) Declining-balance C) Units-of-production D) Double-declining-balance 16) Which.
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27) Which of the following is pay stated as a percentage of a sale amount? A) Bonuses B) Benefits C) Wages D) Commissions 28) Which of the following are deducted in arriving at an employee's net pay? A) Federal income taxes B) FICA taxes—employer's portion C) Federal unemployment taxes D) State unemployment taxes 29) Which of the following deductions must.
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34) An asset costs $80,000 and has a salvage value of $7,000.  It has a four-year life.  Using double-declining-balance depreciation, Year 2 depreciation would be: A) $15,000.00. B) $15,437.50. C) $20,000.00. D) $18,250.00. 35) A factory has a machine costing $76,000.  It has a 5-year life and an estimated capacity of 160,000 parts.  The salvage.
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43) Barnhart's sold a piece of restaurant equipment to another restaurant on July 1, 2013 for $1,100 cash.  The equipment originally cost $12,000, had an estimated life of 20 years, and an estimated salvage value of $2,000. Barnhart's had recorded total depreciation of $9,000 through the end of 2012, using.
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21) Roberts Construction Company paid $40,000 for equipment with a market value of $45,000.  At which of the following amounts should the equipment be recorded? A) $45,000 B) $40,000 C) $42,500 D) $5,000 22) A company purchased a used machine for $80,000.  The machine required installation costs of $8,000 and insurance while in transit of.
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