Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. A capital expenditure results in a debit to (a) an expense account b. a capital account c. a liability account d. an asset account
5. A capital expenditure results in a debit to (a) an expense account b. a capital account c. a liability account d. an asset account 6. Cash collected from customers at AL-Huda Gaz station during January 2017, was $315,000 which includes a sales tax of 5\%. What is the amount of sales taxes payable? a. $300,000 b. $315,000 (c) $15,750 d. $15,000 7. Pinar Company purchases a new delivery truck for $45,000 ) The sales taxes are $2,000. The logo of the company is painted on the side of the truck for $1,200. The truck license is $120. The truck undergoes safety testing for $220. What does Pinar record as the cost of the new truck? a. $48,540. b. $48,420. (c) $47,000. d. $46,420. 8. An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of 2012 , it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2.000. Calculate the 2012 depreciation expense using the revised amounts and straight line method. a. $25,000 (b.) $11,000 c. $24,000 d. $24,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started