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Accounting 2 Multiple choice Reggie purchases land for $40,000 and additionally, pays his lawyer $5,000 to advise him in the purchase. The $5,000 would be

Accounting 2 Multiple choice

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Reggie purchases land for $40,000 and additionally, pays his lawyer $5,000 to advise him in the purchase. The $5,000 would be debited to: 2. Legal Expense b. Miscellaneous Expense C Land d. None of these Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for $14,000 cash. Which of the following is true? 3. Gain on Disposal will be debited for $3,000 b. Loss on Disposal will be credited for $1,000 c loss on Disposal will be debited for $1,000 d. Gain on Disposal will be credited for $3,000 who pays unemployment taxes? A. employee only b. employer and employee cemployer only d. neither employer nor employee 0 0 1000 Johnson purchases a piece of equipment with an estimated useful life of 4 years. The Dog rate for this asset would be: 2.8% b. 125 c. 25 d. 50 on which financial statement would again or loss be reported? A. Balance Sheet b. Income Statement c Owner's Equity Statement d. None of these Goodwill is an intang ble asset that arises when: 2. a company sells a really popular product the company wins the President's Award c. Mr. O'Neill brings a box of Krispy Kremes to class d.one company purchases another company, paying more for it than the value of its net assets Leonard purchased a delivery truck and hired a local artist $2,500 to paint his company name on the side of the truck. Which account would be debited for this cost? A. debit Art Expense b. debit Advertising Expense cdebit the Truck account d. debit Repairs Expense William sold equipment and made a loss of $3,000. Would the loss be a debit item or a credit item, and on which financial statement would the loss appear? A credit the loss and report on the balance sheet b. debit the loss and report on the income statement cdebit the loss and report on the balance sheet d. none of these who pays unemployment taxes? A. employee only b. employer only employer and employee d. neither employer nor employee Elgin borrows $10,000 on a 3 month 6% note. The interest expense Elgin will pay at maturity on this note will be: 2. $50 b $500 $6,000 d. $150 10 11 Warren has equipment with cost of $22.000 and accumulated depreciation of $15,000. If Warren sells the equipment for $7,000, what is the gain or loss? A. gain of $7,000 b. loss of $1,000 c gain of $13,000 d. gain of $1,000 121 How are partners compensated in a partnership? A. each partner receives a cash payment on 12/31 beach partner gets a salary paid in cash c. each partner's capital receives a portion of the net income or loss in closing d. Interest expense is debited, and each partner receives the interest in cash 13 How are assets contributed by the partners valued in the partnership? A valued at original cost b.valued at original cost minus accumulated depreciation valued at fair market value d. valued at an amount specified by the contributing partner 14 Conner contributed $15,000 cash to the AB partnership and received a $20,000 capital interest Who received the bonus in this case? A. the other partners of As partnership b. there was no bonus c. Conner received the bonus d. none of these is correct 15 Which of the following depreciation methods is accelerated? A straight line bunits of activity c double declining balance e. all of these are accelerated When constructing a depreciation schedule, the accountant must remember that the book value at the end of the asset's life must be equal to the a. depreciable cost bcost cbook value d. salvage value 17 Clark sold an asset this year for $4,000, but the book value of the asset was $7,000. What effect will this transaction have on the income statement for the year? A. an increase in net income b. a decrease in net income c. no effect on net income d. we don't know 18 Social Security is a government program that a. provides income to citizens after they retire b.pays people when they become unemployed c provides vacation pay to working people d. none of these 1S Tom and Jerry went into business as a partnership with Tom investing cash of $90,000 and Jerry investing $10,000. They had no partnership agreement. If they incur a $20,000 loss, how must they split the loss? A in the ratio of their investment b. 90:10 c. 60:40 d. 50:50 20 Social Security taxes Social Security and Medicare) are paid by. a. employee only b. employer and employee c. neither employer nor employee d. employer only

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