1. What are four classifications of receivables on the Balance Sheet and CIRCLE whether they are CURRENT or LONG-TERM? (C7- 1)

1. ________________________________________CURRENT LONG-TERM___

2. ________________________________________CURRENT LONG-TERM___

3. ________________________________________CURRENT LONG-TERM___

4. ________________________________________CURRENT LONG-TERM___

2. Using the following, Aging Schedule calculate the Estimated Uncollectable Receivables and resulting Journal Entry (C7-3).

Days Estimated Accounts Estimated Estimated

Collectible % Receivable Collectible Not Collectible

0 - 30 98% 1,000,000 ____________ ____________

31 60 95% 800,000 ____________ ____________

61 90 90% 600,000 ____________ ____________

91 120 70% 200,000 ____________ ____________

121+ 50% 400,000 ____________ ____________

TOTAL ____________ ____________ ____________

Journal entry to record this adjustment:

3. What are some examples of Cash and Cash Equivalents (C6-1).

4. Accounts Receivable represents (C7-1):

a. The amount that is owed to the company.

b. The amount that the company owes to its creditors.

c. The amount of loans the company has received.

d. The amount the company has received from its customers.

5. The balance sheet includes items such as property, plant and equipment. Regardless of the year, those assets are shown on the balance sheet at (C8-1):

a) market value less accumulated depreciation.

b) historical cost less accumulated depreciation.

c) liquidation value less accumulated depreciation.

d) replacement cost less accumulated depreciation.

6. Compute the Depreciation expense on the Income Statement and the related book value on the Balance Sheet for each of the years using the DOUBLE DECLINING BALANCE DEPRECIATION METHOD (C8-3)

Item: Equipment costing $16,000 and a salvage value of $1,000.

I/S Depreciation Expense B/S Book Value

Year 1 ________________ _________________________

Year 2 ________________ _________________________

Year 3 ________________ _________________________

Year 4 ________________ _________________________

Year 5 ________________ _________________________