A company purchased a new delivery van at a cost of $55,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a salvage value of $4,300. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

Multiple Choice

• $5,930.

• $5,070.

• $5,500.

• $5,160.

• $10,140.

A company's current assets are $23,620, its quick assets are $14,000 and its current liabilities are $14,200. Its quick ratio equals:

Multiple Choice

• 1.68.

• 1.67.

• 1.00.

• 2.68.

• 0.99.

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,900; Supplies, $670; Equipment, $10,600; Accounts Payable, $9,300. What is the amount of owner's equity as of August 31 of the current year?

Multiple Choice

• $10,330.

• $11,670.

• $31,530.

• $32,870.

• $32,200.

A company purchased new furniture at a cost of $22,000 on September 30. The furniture is estimated to have a useful life of 4 years and a salvage value of $2,800. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31?

Multiple Choice

• $4,350.

• $1,375.

• $400.

• $1,550.

• $1,200.

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Wilson Peters, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)

Wilson Peters, Capital	$	8,000
Wilson Peters, Withdrawals		11,200
Revenue		32,000
Rent expense		3,200
Salaries expense		7,500
Insurance expense		360
Depr. Expense-equipment		540
Accum depr.-equipment		1,620

Multiple Choice

• $9,200 credit.

• $20,400 debit.

• $22,020 credit.

• $20,400 credit.

addleback Company paid off $38,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Multiple Choice

• Assets, $38,000 decrease; liabilities, $38,000 increase.

• Assets, $38,000 decrease; liabilities, $38,000 decrease.

• Assets, $38,000 decrease; equity $38,000 decrease.

• Assets, $38,000 increase; equity, $38,000 increase.

• Liabilities, $38,000 decrease; equity, $38,000 increase.

Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $10,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $25,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Multiple Choice

• Debit Salaries expense $15,000; credit Salaries payable $15,000.

• Debit Salaries expense $15,000; debit Salaries payable $10,000; credit Cash $25,000.

• Debit Salaries payable $10,000, credit Salaries expense $10,000.

• Debit Salaries expense $10,000; credit Salaries payable $10,000.

• Debit Salaries payable $15,000; credit Cash $15,000.