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$84,600. d. $70,200. 7. On January 1, 2017, Count Co. bought a trademark from Addition, Inc. for $2,000,000. An independent research company estimated that the

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$84,600. d. $70,200. 7. On January 1, 2017, Count Co. bought a trademark from Addition, Inc. for $2,000,000. An independent research company estimated that the remaining useful life of the trademark was 10 years. Its unamortized cost on Addition's books was $1,500,000. In Count's 2017 income statement, what amount should be reported as amortization expense? $200,000. $150,000. $100,000. d. $75,000. b c. 8. Greaten Co. signed a three-month, zero-interest-bearing note on November 1, 2017 for the purchase of $500,000 of inventory, The face value of the note was $507.800. Greaten used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2017 will include a a. Debit to Discount on Note Payable for $2,600. b. Debit to Interest Expense for $5,200. c. Credit to Discount on Note Payable for $2,600. d. Credit to Interest Expense for $5,200. 9. Big Store Surplus made cash sales during the month of October of $375,000. The sales are subject to a 6 % sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the sale transactions? Debit Accounts Receivable for $375,000. a b. Credit Sales Taxes Payable for $21,226. Credit Sales Revenue for $347,483. Credit Sales Taxes Payable for $22,500. d. C. 10. Dan borrowed $700,000 on October 1, 2017 and is required to pay $720,000 on March 1, 2018. What amount is the note payable recorded at on October 1, 2017 and how much interest is recognized from October 1 to December 31, 2017? $700,000 and $0. $700,000 and $12,000. $720,000 and $0. $700,000 and $20,000. a. b. c. d. 11. Readable newspapers sold 6,000 of annual subscriptions at $150 each on June 1. How much unearned revenue will exist as of December 31? a. $0. b. $375,000. c. $450,000. d. $900,000. 12. Contractors Company provides extended service contracts on electronic equipment sold through major retailers. The standard contract is for four years. During the current year, 2|Page

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