24. Milos Company purchased a depreciable asser for $37,000 op /April 1, 2010. The asset will be depreciated using the straight-line depreciation method and has an estimated useful life of 7 years and residual value of s2,000. What is the beek vale for this asset on December 3L 201. A. $28,250 B. $18,250 C. $5,000 D. $23,250 25. Mountain People's Coop carries herbal tea for sale on consignment from Green Heron Company. Which company should report the inventory of unsold tea on its balance sheet? A. Neither company B. Green Heron Company C. Mountain People's Coop D. Both companies 26. Amortizing a bond discount will that when the bond matures the carrying value willthe face value. Ithe discount balance and the carrying value of the bond so A. decrease; decrease; equal B. increase; decrease; be greater than C. decrease; increase; be greater than D decrease; increase; equal 27. Recording the estimate of bad debt expense: A. increases net income. B. increases assets. C. is done at the same time the credit sale is recorded. D. follows the expense recognition (C"matching") principle. 28. Jay-Cee Corporation had 20,000 shares of $4 par value common stock outstanding on January 1. On January 20, the company purchased 2,000 shares of its stock for $16 per share. On July 3, the company reissued 1,000 of the shares at $20 per share. Assume the company paid a dividend of $5 per share on August 3. What is the total amount of the dividends that would be paid to the common stockholders? A. $76,000 B. $100,000 C. $90,000 D. $95,000 A company issues Lcuillion shares of common sack wichvae So.02 for $13 a share The entry to record this rtion ncludes aebi tD Cash for A $20, 000, adebit to Canital ReceivaoS1490.coacrdit oCommon Sock for $20,000, and a credit lo Padin Capital i' Excess ofPar-Cannon Suck $14 B, 000 $15,000,000 and a credit to Cammon Sud for $15000000. S15.000000, a credit to Common Stock for $20,000, and a credit to Paid-in Capital in Excess of Common Stock $14,980,000. D $20,000 and a credit to Common Stock for $20,000. 34. Mahel Miller is paid monthly. For the month of lanuary, she carned a sota of200. FICA or security is6.0% and the FICA tax for Medicare is 1.5%. Thettfor FUTA ta s 0.8% and the rate tax is 5.4%. Both unemployment taxes are applied to Mahers pay Federal ux witheld from Mabehelmings was S900. What is the total amount of payroll deductions withheld from Mabe's carnings? for SUTA A. $900.00 B. S1,74940. C $465.0 D. SI,365.00. 5. When a note is dishonored, the payee's entry includes a A. debit to Interest Revenue. B. credit to Accounts Receivable. C. debit to Interest Expense D. credit to Notes Reccivable. 36. Kata Company uses the allowance method. On May I, Kats wrote offa $22,000 customer account balance when it becomes clear that the particular customer will never pay. The jounal entry to record the write-off on May I would include which of the following A. Debit to Allowance for Doubtful Accounts and crodit o Bad Debk Expense B. Debit to Accounts Receivable and credit o Allowance for Doubtful Accounts C.Debit to Bad Debe Expense and credit to Allowance for Doubtful Accounts D. Debit to Allowance for Doubrful Accounts and credit to Accounts Receivable 7. Ifa company uses a pety cash fund: Petty Cash is debited when funds are replenished. Cash is credited when funds are replenished. ash is debited when funds are replenished ty Cash is credited when funds are replenished
