71.. Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the receipt of interest on the next interest payment date would be:
| | a. Debit: Cash $4,000; Credit: Interest Receivable $4,000 | | |
| | b. Debit: Cash $2,500; Credit: Interest Revenue $2,500 | | |
| | c. Debit: Cash $4,000; Credit: Interest Receivable $1,500 and Interest Revenue $2,500 | | |
| | d. Debit: Cash $4,000; Credit: Interest Revenue $4,000 | |
66. When using the worksheet method to analyzing noncash accounts , no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.
62..Fair value accounting is used more under Generally Accepted Accounting Principles (GAAP) than it is under International Financial Reporting Standards (IRFS).
53. To determine cash payments for income tax for the cash flow statement using the direct method, an increase in income taxes payable is added to the income tax expense.
46..Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
45. Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives?
| | a. debit Investment in Worton Corporation; credit Income of Worton Corporation | | |
| | b. debit Cash; credit Investment in Worton Corporation | | |
| | c. debit Investment in Worton Corporation; credit Cash | | |
| | d. debit Cash; credit Dividend Revenue | |
