1) Quigley Co. bought a machine on January 1, 2013 for $1,400,000. It had a $120,000 estimated residual value and a ten-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2015.

Instructions

Prepare the entry or entries related to the machine for 2015

2) Which of the following is not a change in accounting principle?

a. A change from LIFO to FIFO for inventory valuation

b. Using a different method of depreciation for new plant assets compared to existing plant assets.

c. A change from full-cost to successful efforts in the extractive industry

d. A change from completed-contract to percentage-of-completion

3) In determining net cash flow from operating activities, a decrease in accounts payable during a period

a. means that income on an accrual basis is less than income on a cash basis.

b. requires an addition adjustment to net income under the indirect method.

c. requires a deduction adjustment to net income under the indirect method

d. requires a decrease adjustment to cost of goods sold under the direct method

4)

a.What is the net cash provided by operating activities:

b.What is the net cash provided by investing activities:

Here is the information for X company Net income	$500,000
Gain on sale of truck	$40,000
Increase in accounts payable	90,000
Decrease in inventory	5,000
Increase in bonds payable	300,000
Increase in common stocks	200,000
bond premium amortization	5,000
Depreciation expense	45,000
Loss on sale of investment	3,000
Cash from sales of investment	49,000
Decrease in long term note receivable	130,000
Purchase of truck	15,000