ACC 255 Exam 3 Practice Multiple Choice
ACC 255 Exam 3 Multiple Choice Practice ted of $150.000 the following information tow er the two questions A company purchased machinery for 700 The a and useful We of 5 years 1 What is depreciation expense for the company uses the straight A $300 000 B 240.000 C. $150,000 D $120.000 method 2. What is depreciation expense for year if the company uses the double declining balance method A B C D $144.000 $180 000 $240000 $300.000 Use the following information to answer the next two questions: The following are factors from the time value of money tables for 6%, 20 periods: Future Value of $1 3.2071 Future Value of an Annuity of $1 36.7858 Present Value of $1 0 3118 Present Value of an Annuity of $1 11,4699 3. If you deposit $10,000 annually into a retirement account at the end of each year for 20 years, what amount will be accumulated in your retirement account at the end of the 20 years? A. $32,071 B. $114,699 C. $200,000 D. $367,856 4. A company wishes to deposit a single amount today into a fund to pay the $5,000,000 principal on bonds due in 20 years. If the company ears 6% on the fund, what amount should be deposited? A $4,700,000 B. $1,559.000 C$435,924 D. $135,923 HIEMAN VERSION 5. A company sold aguipment for $100.000 the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company's journal entry to record the sale of the equipment would include a A Credit to Sale of Equipment for $100.000 B Credit to Equipment for $120,000 CDebit to Equipment for $300.000 D. Debit to Loss on Sale of Equipment for $20,000 6. On November 1, a company issued $200,000 of 10 year, 6% bonds, with interest payable semiannually on May 1 and November 1. The company's December 31 year-end adjusting entry should record a A Credit to Cash for $8.000 B Debit to Interest Payable for $6.000 C. Credit to interest Payable for $4,000 D. Debit to Interest Expense for $2,000 7. A company issued $100,000 of 5-year, 10% bonds at a selling price of 102. The journal entry to record the issuance of the bonds would include a A Debit to Cash for $100,000 B. Debit to Discount on Bonds Payable for $2,000 C. Credit to Premium on Bonds Payable for $2.000 D. Credit to Bonds Payable for $102.000 8. A company reports account balances as follows: Common Stock $50,000Paid-in Capital in Excess of Par $750,000, Retained Earnings $175,000; and Treasury Stock of $25,000. What amount should the company report as total stockholders' equity? A $800,000 B. $950.000 C$975.000 D. $1,000,000 9. A company declared cash dividends of $0.20 per share. If there are 500,000 shares of common stock authorized, 100,000 shares issued, and 80,000 shares outstanding at the date of declaration, what is the amount that the company should record for the dividend? A $100,000 B. $20,000 C. $ 16,000 D. $4.000 10. A company issues 4,000 shares of $5 par value common stock for $140,000. What account(s) are credited in the journal entry to record the issuance? A. Cash for $140,000 B. Common Stock for $140,000 C. Common Stock for $20,000 and Retained Earnings for $120,000 D. Common Stock for $20,000 and Pald-in Capital in Excess of Par for $120,000 ACC 255 Exam 3 Multiple Choice Practice ted of $150.000 the following information tow er the two questions A company purchased machinery for 700 The a and useful We of 5 years 1 What is depreciation expense for the company uses the straight A $300 000 B 240.000 C. $150,000 D $120.000 method 2. What is depreciation expense for year if the company uses the double declining balance method A B C D $144.000 $180 000 $240000 $300.000 Use the following information to answer the next two questions: The following are factors from the time value of money tables for 6%, 20 periods: Future Value of $1 3.2071 Future Value of an Annuity of $1 36.7858 Present Value of $1 0 3118 Present Value of an Annuity of $1 11,4699 3. If you deposit $10,000 annually into a retirement account at the end of each year for 20 years, what amount will be accumulated in your retirement account at the end of the 20 years? A. $32,071 B. $114,699 C. $200,000 D. $367,856 4. A company wishes to deposit a single amount today into a fund to pay the $5,000,000 principal on bonds due in 20 years. If the company ears 6% on the fund, what amount should be deposited? A $4,700,000 B. $1,559.000 C$435,924 D. $135,923 HIEMAN VERSION 5. A company sold aguipment for $100.000 the equipment had cost $300,000 and had accumulated depreciation of $180,000. The company's journal entry to record the sale of the equipment would include a A Credit to Sale of Equipment for $100.000 B Credit to Equipment for $120,000 CDebit to Equipment for $300.000 D. Debit to Loss on Sale of Equipment for $20,000 6. On November 1, a company issued $200,000 of 10 year, 6% bonds, with interest payable semiannually on May 1 and November 1. The company's December 31 year-end adjusting entry should record a A Credit to Cash for $8.000 B Debit to Interest Payable for $6.000 C. Credit to interest Payable for $4,000 D. Debit to Interest Expense for $2,000 7. A company issued $100,000 of 5-year, 10% bonds at a selling price of 102. The journal entry to record the issuance of the bonds would include a A Debit to Cash for $100,000 B. Debit to Discount on Bonds Payable for $2,000 C. Credit to Premium on Bonds Payable for $2.000 D. Credit to Bonds Payable for $102.000 8. A company reports account balances as follows: Common Stock $50,000Paid-in Capital in Excess of Par $750,000, Retained Earnings $175,000; and Treasury Stock of $25,000. What amount should the company report as total stockholders' equity? A $800,000 B. $950.000 C$975.000 D. $1,000,000 9. A company declared cash dividends of $0.20 per share. If there are 500,000 shares of common stock authorized, 100,000 shares issued, and 80,000 shares outstanding at the date of declaration, what is the amount that the company should record for the dividend? A $100,000 B. $20,000 C. $ 16,000 D. $4.000 10. A company issues 4,000 shares of $5 par value common stock for $140,000. What account(s) are credited in the journal entry to record the issuance? A. Cash for $140,000 B. Common Stock for $140,000 C. Common Stock for $20,000 and Retained Earnings for $120,000 D. Common Stock for $20,000 and Pald-in Capital in Excess of Par for $120,000
