1.When a company retires bonds before maturity, the gain or loss on redemption is the difference between the cash paid and the

A. maturity value of the bonds. B. face value of the bonds. C. carrying value of the bonds. D. original selling price of the bonds.

2.

On May 1, 2013, Pinkley Company sells office furniture for $150,000 cash. The office furniture originally cost $375,000 when purchased on January 1, 2006. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $37,500. What depreciation expense should be recorded on this asset in 2013?

Select one:

A. $16,875.

B. $12,500.

C. $11,250.

D. $33,750.

3.

In 2013, Lang Company had net credit sales of $1,266,000. On January 1, 2013, Allowance for Doubtful Accounts had a credit balance of $25,000. During 2013, $42,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $272,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2013?

Select one:

A. $42,000

B. $27,200

C. $126,600

D. $44,200

4.

Wesley Hospital installs a new parking lot. The paving cost $38,000 and the lights to illuminate the new parking area cost $15,000. Which of the following statements is true with respect to these additions?

Select one:

A. $38,000 should be debited to the Land account.

B. $15,000 should be debited to Land Improvements.

C. $53,000 should be debited to Land Improvements.

D. $53,000 should be debited to the Land account.

5.

Equipment that cost $210,000 and on which $100,000 of accumulated depreciation has been recorded was disposed of for $90,000 cash. The entry to record this event would include a

Select one:

A. credit to the Equipment account for $110,000.

B. credit to Accumulated Depreciation for $100,000.

C. loss of $20,000.

D. gain of $20,000.

6.

Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,400. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be

Select one:

A. $479,600.

B. $476,000.

C. $480,000.

D. $475,600.

7.

Tempest Company purchased land for $464,000. Additional costs include a $30,200 fee to a real estate broker, a survey fee of $4,500, $2,750 to construct a fence, and a legal fee of $11,800. What should Tempest record as the cost of the land?

Select one:

A. $464,000.

B. $510,500.

C. $461,250.

D. $513,250.

8.

Kingston Company purchased a piece of equipment on January 1, 2012. The equipment cost $120,000 and had an estimated life of 8 years and a salvage value of $15,000. What was the depreciation expense for the asset for 2013 under the double-declining-balance method?

Select one:

A. $30,000.

B. $13,000.

C. $23,438.

D. $22,500.