1. Medici Bank agrees to lend Pazzi Company $800,000 on March 1. Pazzi Company signs a $800,000, 8%, 9-month note. What entry will Pazzi Company make to pay off the note and interest at maturity assuming that interest has been accrued to November 30? (1 points)

A. Notes Payable 848,000 Cash 848,000

B. Notes Payable 800,000 Interest Payable 48,000 Cash 848,000

C. Interest Expense 48,000 Notes Payable 800,000 Cash 848,000

D. Interest Payable 32,000 Notes Payable 800,000 Interest Expense 16,000 Cash 848,000

E. None of the above.

2. Slush Corporation purchased a delivery van costing $200,000 on July 1, 2021. The van has useful life of ten years and a $5,000 residual value. The company's year ends on 31 December. At the beginning of year 2025 it is clear that it would not be effective to continue using the van after 31 December, 2027. Also, the remaining residual value of the van would be zero. If the van is depreciated using straight line method determine the depreciation expense during 2025? (2 points)

A. $65,000

B. $43,917

C. $19,500

D. $42,250

3. Slush Corporation purchased a delivery van costing $50,000 on April 1, 2021. The van has useful life of ten years and a $2,000 residual value. The company's year ends on 31 December. If the van is depreciated using double-declining balance method and partial depreciation is recorded in 2021, determine the depreciation expense during 2022? (2 points)

A. $4,800

B. $8,500

C. $9,500

D. $8,000

4a. TriStar company has the following assets:

Buildings and Equipment $25,000,000

Less: accumulated depreciation of $5,000,000

Patents 2,400,000

Trademarks 10,000,000

Land 12,000,000

Goodwill 2,000,000

Cash 8,000,000

The total amount reported under Property, Plant, and Equipment would be (4 points)

A. $45,000,000.

B. $37,000,000.

C. $47,000,000.

D. $25,000,000.

4b. Given the following account balances at year end, compute the total intangible assets on the balance sheet of Janssen Enterprises.

Cash $1,500,000

Accounts Receivable 1,000,000

Trademarks 1,200,000

Goodwill 2,500,000

Research & Development Costs 2,000,000

A. $5,700,000

B. $9,700,000

C. $7,700,000

D. $3,700,000

5. Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? (1 points)

A. $112,500.

B. $108,750.

C. $113,400.

D. $105,000.

6. Slush Corporation purchased a delivery van costing $100,000 on February 1, 2021. The van has useful life of five years and a $20,000 residual value. The company's year ends on 31 January. If the van is depreciated using double-declining balance method, determine the depreciation expense during 2025? (2 points)

A. $0

B. $1,600

C. $8,640

D. $40,000

7. On July 1, 20X1, Robinson Company purchased a new machine for $200,000. The machine is estimated to have a service-life of 10 years with an estimated residual value of $5,000. Robinson uses straight line depreciation method. During 20X5, it became apparent that the machine would not be efficient to operate after December 31, 20X7. Furthermore, the machine would have $2,000 of scrape value. How much should be charged to depreciation expense in 20X5 (round computations to the nearest dollar)? (3 points)

A. $43,250

B. $19,500

C. $41,583

D. $65,000

8. Kiki Company credits its Sales Revenue account for the sales price and the sales tax collected on sales. If the sales tax rate is 10% and the balance in the Sales Revenue account amounted to 550,000, what is the amount of the sales taxes owed to the taxing authority? (2 points)

A. 48,000.

B. 49,500.

C. 55,000.

D. 50,000.

E. None of the above.

9. Kiki Company credits its Sales Revenue account for the sales price and the sales tax collected on sales. If the sales tax rate is 10% and the balance in the Sales Revenue account amounted to 550,000, what is the amount of the sales taxes owed to the taxing authority? (2 points)

A. 48,000.

B. None of the above.

C. 50,000.

D. 55,000.

E. 49,500.

10. A mortgage note payable with a fixed interest rate requires the borrower to make installment payments over the term of the loan. Each installment payment includes interest on the unpaid balance of the loan and a payment on the principal. With each installment payment, indicate the effect on the portion allocated to interest expense and the portion allocated to principal. (1 points)

Portion Allocated Portion Allocated to Interest Expense to Payment of Principal

A. Increases Increases

B. Increases Decreases

C. Decreases Decreases

D. Decreases Increases

E. None of the above.