1) If a bond is selling at 103, it is selling at: A premium. A discount. Maturity value and yields a 2% interest rate. $103 per bond.

2) The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks. What is the "adjusted cash balance" at June 30? $3,093. $7,600. $2,400. $3,900.

3) Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in 2017 and 2018 will be:

$11,000 in 2017 and $19,250 in 2018. $11,000 in 2017 and $22,000 in 2018. $22,000 in 2017 and $7,857 in 2018. $22,000 in 2017 and $12,571 in 2018.

4) 7A company decides to exchange its old machine and $77,000 cash for a new machine. The old machine has a book value of $63,000 and a fair market value of $70,000 on the date of the exchange. The cost of the new machine would be recorded at $140,000. $133,000. $147,000. cannot be determined. 8Wilbur Company purchased $10,000 of equipment on December 20, 2018 on terms 2/15, net 30. Wilbur paid for the equipment on the 15th day following purchase and took advantage of the discount. Which of the following statements is correct? Wilbur will record a cash outflow from investing activities of $10,000 in its 2019 financial statements. Wilbur will record a cash outflow from investing activities of $9,800 in its 2018 financial statements. Wilbur will record a cash outflow from investing activities of $9,800 in its 2019 financial statements. Wilbur will record a cash outflow from investing activities of $10,000 in its 2018 financial statements. 9The accounting records of Golden Company showed cash of $15,250 at June 30. The balance per the bank statement at June 30 was $15,125. The only reconciling items were deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000 returned by the bank which Golden had not yet charged back to the customer, and a bank service charge of $25. The preparation of the bank reconciliation should indicate that Golden's adjusted cash balance at June 30 is: $15,375. $14,475. $14,225. $15,525. 10The balances of the major classes of plant assets and accumulated depreciation by major classes should be disclosed in the balance sheet or notes. True False 11Joe's Quik Shop bought machinery for $25,000 on January 1, 2008. Joe estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2009, Joe decides that the business will use the machinery for a total of 6 years. What is the revised depreciation expense for 2009? $5,000 $4,000 $3,333 $2,000 12A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the book value of the asset sold. salvage value of the asset sold. market value of the asset sold. accumulated depreciation on the asset sold.