1.At the beginning of last year, Billings Corporation purchased a piece of heavy equipment for $72,000. The equipment has a life of five years or 100,000

hours. The estimated residual value is $2,000. Bremond used the equipment for 18,000 hours last year and 23,000 hours this year. Depreciation expense for year two using double-declining-balance (DDB) and units-of-production (UOP) methods would be as follows:

(Carry all rates to two decimal places, .XX)

DDB UOP

(a)$17,280 $16,100

(b)$16,800 $16,560

(c)$16,800 $16,100

(d)$17,280 $16,560

2.Peters Company purchased a machine for $8,800 on January 1, 2016. The machine has been depreciated using the straight-line method over a10-year life with a $400

residual value. Peters sold the machine on January 1, 2018, for $8,200. The book value as of December 31, 2017 is $7,120. What gain or loss should Peters record on the sale?

(a)Loss, $( 240 )

(b)Gain, $ 200

(c)Loss, $1,080

(d)Gain, $1,080

3.A company purchased mineral assets costing $800,000, with estimated residual value of $40,000, and holding approximately 200,000 tons of ore. During the first year, 44 comma 44,000 tons are extracted and sold. What is the amount of depletion for the first year? (Round intermediary calculations to seven decimal places as needed, X.XXXXXXX and your final answer to the nearest whole dollar.)

A.

$152,100

B.

$167,200

C.

$176,000

D.

Cannot be determined from the data given

4. Honeysuckle Company sells $500,000 of 99%, 15-year bonds for 67.0454 on April 1, 2016. The market rate of interest on that day is 14.5%. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be as follows: (Intermediary and final answer calculations are rounded to the nearest whole number.)

A. Cash 500,000

Bonds Payable 500,000

B. Cash 335,227

Bonds Payable 335,227

C. Cash 335,227

Discount on Bonds Payable 164,773 50,000

Bond Payable

D.Cash 50,000

5. New Trend Company sells $350,000 of 44%, 10-year bonds for 60.904 on April 1, 2016. The market rate of interest on that day is 10.5%. Interest is paid each year on April 1. The issue price of the bond is $213,164. New Trend Company uses the straight-line amortization method. The amount of interest expense for each year will be (Intermediary calculations are rounded to the nearest whole number.)

A. $50,434.

B. 27,684.

C. $34,976.

D. $14,000.

E. none of these.

6.McIntosh Corporation issued $100,000 of 12%, 20-year bonds payable on January 1, 2016. The market interest rate when the bonds were issued was 13%. Interest is paid semiannually on January 1 and July 1. The first interest payment is July 1, 2016. McIntosh recorded interest expense of $6,040 using the effective-interest amortization method.

McIntosh's entry to record the interest expense on July 1, 2016, will include a

A. debit to Bonds Payable.

B. debit to Premium on Bonds Payable.

C. credit to Discount on Bonds Payable.

D. credit to Interest Expense.

7. A corporation has 10,000 shares of 15% preferred stock outstanding. Also, there are 10,000 shares of common stock outstanding. Par value for each is $100. If a $600,000

dividend is paid, how much goes to the preferred stockholders?

A. None

B. $150,000

C. $600,000

D. $90,000

E. $130,000

8. A corporation has 50,000 shares of 12% preferred stock outstanding. Also, there are 50,000 shares of common stock outstanding. Par value for each is $100. If a $900,000

dividend is paid, what is the amount of dividends per share on common stock?

A. $12.00

B. $6.00

C. $3.00

D. $18.00

E. None of these

9. A company paid $30 per share to purchase 900 shares of its common stock as treasury stock. The stock was originally issued at $18 per share. Which of the following is the journal entry to record the purchase of the treasury stock?

A.

Treasury Stock 16,200

Retained Earning 10800

Cash 27,000

B.Treasury Stock 27,000

Cash 27,000

C. Common Stock 27,000

Cash 27,000

D. Treasury Stock 16,200

Paid - In Capital in Excess of Par 10,800

Cash 27,000

10. Spirit World, Inc., issues 280,000 shares of no-par common stock for $9 per share. The journal entry is which of the following?

A. Cash 2,520,000

Common Stock 560,000

Paid-In Capital in Excess of Par 1,960,000

B. Cash 2,520,000

Common Stock 2,520,000

C. Cash 2,520,000

Common Stock 280,000

Gain on the Sale of Stock 2,240,000

D. Cash 280,000