Accumulated Depreciation

a. is used to show the amount of cost expiration of intangibles

b. is a contra asset account

c. is the same as Depreciation Expense

d. is used to show the amount of cost expiration of natural resources

2. The process of transferring the cost of a natural resource, like ore or minerals, to an expense account is called

a.depletion

b. deferral

c.amortization

d. depreciation

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the second year.

a. $0.00 and $0.45

b. $2.25 and $0.45

c. $2.00 and $0.45

d. $2.25 and $0.00

According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a

a. credit to Salaries Expense of $313,000

b. debit to Salaries Payable of $313,000

c. credit to Salaries Payable of $364,500

d. debit to Salaries Expense of $364,500

During May, Blast sold 650 portable CD players for $50 each and provided a one-year warranty with each unit. Each CD player cost Blast $25 to produce. If 10% of the goods sold typically need to be replaced over the warranty period, for what amount should Blast debit Product Warranty Expense in May?

a. $1,300

b. $3,250

c. $650

d. $1,625