Bond purchasers will always pay the face value to purchase a bond may pay more or less than face value to purchase a bond not know the amount they are paying for the bond none of the above Flag this Question Question 24 pts Bond interest rates must be adjustable must be fixed can be adjustable or fixed none of the above Flag this Question Question 34 pts Bonds differ from stocks in that they are classified as a debt must be repaid have a maturity date all of the above Flag this Question Question 44 pts Which of the following is not a disadvantage of raising capital through the issue of bonds payable? the bonds are classified as a long-term liability interest must be paid even if the firm suffers a loss the face amount must be repaid at maturity interest is deductible for income tax purposes Flag this Question Question 54 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a debit to the Cash account for $408,000. $400,000. $398,000. $392,000. Flag this Question Question 64 pts The corporation must maintain a subsidiary ledger showing who owns the bonds and is entitled to receive interest payments if the bonds are coupon bonds. registered bonds. bearer bonds. unregistered bonds. Flag this Question Question 74 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a credit to the Bonds Payable account for $408,000. $392,000. $400,000. $398,000. Flag this Question Question 84 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a debit to the Discount on Bonds Payable account for $2,000. $4,000. $6,000. $8,000. Flag this Question Question 94 pts The issuing corporation ___________________ the bond discount from the date of issue to the maturity date. Here a bond issued at a discount will increases the bond interest expense shown on the income statement records discounts omits amortizes Flag this Question Question 104 pts If bonds are issued for a price below their face value, the bond discount should be charged to expense on the date the bonds are issued. amortized over the life of the bond issue. shown as an addition to Bonds Payable in the Long-Term Liabilities section of the balance sheet. shown as a current liability on the balance sheet. Flag this Question Question 114 pts The amortization of the bond discount __________ the carrying value of the bond, while the amortization of the bond premium __________ the carrying value of the bond. decreases, increases increases, decreases increases, increases decreases, decreases Flag this Question Question 124 ptsSkip to question text. On December 31, 2013, a corporation issued $200,000 face value, 12 percent bonds that mature 10 years from the date of issue. The issue price was 103. If the firm uses the straight-line method of amortization, interest expense for 2014 will be reported at $24,600. $24,000. $23,400. $19,400. Flag this Question Question 134 ptsSkip to question text. A bond sinking fund investment is started on January 5, 2013, by transferring $12,000 in cash to the fund. This $12,000 is invested and earns $1,500 during 2013. On January 5, 2014, the amount of cash transferred to the sinking fund investment will be $10,500. $12,000. $13,500. $1,500. Flag this Question Question 144 pts Retained Earnings Appropriated for Bond Retirement appears as a separate line item on the Income Statement. on the Balance Sheet. on the Bond Interest Reconciliation Schedule. on the Statement of Cash Flows. Flag this Question Question 154 pts A bond sinking fund investment is started on January 5, 2013, by transferring $10,000 in cash to the fund. This $10,000 is invested and earns $1,100 during 2013. The entry to record the earnings made on the sinking fund investment includes a debit to Cash for $1,100 and a credit to Income from Sinking Fund Investment for $1,100. a debit to Cash for $1,100 and a credit to Bond Sinking Fund Investment for $1,100. a debit to Bond Sinking Fund Investment for $1,100 and a credit to Income from Sinking Fund Investment for $1,100. a debit to Cash for $1,100 and a credit to Interest Income for $1,100. Flag this Question Question 164 ptsSkip to question text. Twee Corporation creates a bond sinking fund on July 1, 2013, the first day of its fiscal year in preparation of payment of principal of $300,000 due in six years. Twee makes a $50,000 cash deposit into the account and invests it in an oil stock fund. During the year, $4,400 is earned on this investment. Fund administrative expenses for this fund amount to $50. What is the journal entry to record earnings on this investment? debit Bond Sinking Fund Investment for $4,400 and credit Income from Sinking Fund Investment for $4,400 debit Bond Sinking Fund Investment for $4,350 and credit Income from Sinking Fund Investment for $4,350 debit Bond Sinking Fund Investment for $4,350, debit Administrative Expenses for $50 and credit Income from Sinking Fund Investment $4,400 None of the above Flag this Question Question 174 pts A planned fund established to accumulate assets to pay off bonds when they mature is called a bond ____________________ fund investment. planning repayment sinking none of the above Flag this Question Question 183 pts Which of the following statements is correct? Market value is the figure selected by the organizers of the corporation to be assigned to each share of stock for accounting purposes. If there is only one class of stock, the stock is called preferred stock. The authorized capital stock is the number of shares that have been issued and are still in the hands of stockholders. In the event of liquidation, preferred stockholders have a claim on assets before that of common stockholders. Flag this Question Question 193 pts Subchapter S corporations have the disadvantage of double taxation. require that shareholders report their share of profits on their partnership tax returns. have the advantage that shareholders can take part in policy and operating decisions. are entities formed as corporations but are treated essentially as a partnership so the corporation pays no income tax. Flag this Question Question 203 pts Which of the following statements is correct? Shareholders have personal liability for a corporation's debts. Shareholders must obtain the consent of other shareholders to sell their shares or buy more shares. Limited liability partnership (LLP) partners have liability for their own actions and the actions of those under their control or supervision. Shareholders are legally prohibited from acting as an officer or employee of a corporation. Flag this Question Question 213 ptsSkip to question text. Santorini Corporation has outstanding 300,000 shares of $70 par-value preferred stock, issued at an average price of $84 a share. The preferred stock is convertible into common stock at the rate of four shares of common stock for each share of preferred stock. Maryann Miller owns 880 shares of the preferred stock. During the current year she decides to convert 220 shares into common stock. How many shares of common stock will she receive? 220 shares 880 shares 300,000 shares 1,200,000 shares Flag this Question Question 223 ptsSkip to question text. The Maynard Corporation has outstanding 10,000 shares of 10 percent, $50 par-value, cumulative, nonparticipating preferred stock and 80,000 shares of $10 par-value common stock. The board of directors voted to distribute $40,000 as dividends in 2013, $55,000 in 2014, and $65,000 in 2012. What is the total dividend paid to preferred stockholders in 2013? $10,000 $20,000 $30,000 $40,000 Flag this Question Question 233 ptsSkip to question text. A corporation has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of $1.00 a share. $1.60 a share. $2.00 a share. $2.40 a share. Flag this Question Question 243 pts A corporation received a subscription for 200 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions ReceivablePreferred for $20,600 and a credit to Preferred Stock for $20,000 and a credit to Retained Earnings for $600. Preferred Stock Subscribed for $20,000 and a credit to Gain on Sale of Preferred Stock for $600. Preferred Stock Subscribed for $20,000 and a credit to Paid-in Capital in Excess of Par ValuePreferred Stock for $600. Preferred Stock Subscribed for $20,600. Flag this Question Question 253 pts An investor agrees to pay a preferred stock subscription in two monthly installments. Each collection will include a debit to Cash and a credit to Preferred Stock. Preferred Stock Subscribed. Subscriptions ReceivablePreferred. Common Stock Subscribed. Flag this Question Question 263 pts The entry to record the issuance of 500 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $7,000 and a credit to Common Stock for $5,000 and a credit to Treasury Stock for $2,000. $5,000 and a credit to Paid-in Capital in Excess of Par ValueCommon Stock for $2,000. $5,000 and a credit to Gain on Sale of Common Stock for $2,000. $7,000. Flag this Question Question 273 pts Which of the following statements is not correct? The Paid-in Capital in Excess of Par ValueCommon Stock account appears in the Stockholders' Equity section of the balance sheet. The Subscriptions Receivable account is shown in the Stockholders' Equity section of the balance sheet. The balance of the Common Stock account appears in the Stockholders' Equity section of the balance sheet. The balance of the Preferred Stock account appears in the Stockholders' Equity section of the balance sheet. Flag this Question Question 283 pts The net income reported for federal income tax purposes must be the same as reported for financial accounting purposes can be different that net income reported for financial accounting purposes is not reported to the IRS none of the above Flag this Question Question 293 pts The Paid-in Capital in Excess of Par ValuePreferred Stock account would be shown in the Assets section of the balance sheet. Stockholders' Equity section of the balance sheet. Revenue section of the income statement. Expense section of the income statement. Flag this Question Question 303 ptsSkip to question text. After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Carlton Corporation, the net income is determined to be $50,000. Using the following corporate income tax rates, compute the corporation's federal income taxes payable. (Assume that the firm's taxable income is the same as its income for financial accounting purposes.) Taxable IncomeTax Rate First $50,00015% Next $25,00025% Next $25,00034% Next $235,00039% Over $335,000See IRS Publication $0 $3,250 $7,500 None of the above Flag this Question Question 313 pts When closing Income Summary for a corporation, the balance is transferred to Stockholders' Equity Retained Earnings Cash None of the above Flag this Question Question 323 pts A corporation has paid estimated income taxes of $57,500 during the year 2013. At the end of the year, the corporation's tax bill is computed to be $52,100. The journal entry to record the adjustment would be: Debit Income Tax Refund $5,400; credit Income Tax Expense $5,400 Debit Income Tax Expense $5,400; credit Income Tax Payable $5,400 Debit Income Tax Refund $5,400; credit Cash $5,400 None of the above Flag this Question Question 333 pts The entry to record the declaration of a cash dividend consists of a debit to Dividend Expense and a credit to Cash. Retained Earnings and a credit to Common Stock Dividend Distributable. Dividends Payable and a credit to Retained Earnings. Retained Earnings and a credit to Dividends Payable. Flag this Question Question 343 pts Total stockholders' equity would be decreased by a stock split. an appropriation of retained earnings. a cash dividend. a stock dividend. Flag this Question Question 353 ptsSkip to question text. A corporation reported a net income of $90,000 for its fiscal year and declared and paid cash dividends of $60,000. A stock dividend recorded at $30,000 was also distributed during the year. If the beginning balance of the Retained Earnings account was $140,000, the ending balance is $230,000. $170,000. $140,000. $130,000. Flag this Question Question 362 pts An example of real property is machinery. factory equipment. computer equipment. buildings. Flag this Question Question 372 pts The cost of an intangible asset should be immediately charged to expense if the cost was incurred to develop the intangible asset. should be immediately charged to expense whether the intangible asset was developed internally or purchased. should be recorded as an asset whose cost, like the cost of land, will not be allocated to expense. should be charged to expense over the life of the intangible asset. Flag this Question Question 382 pts What is the journal entry to record the following transaction? Purchased office equipment for $6,000. The freight charge was $48 and installation charge was $200 debit office equipment 6,000, debit freight expense $48, debit installation expense $200; credit Cash 6,248 debit office equipment 6,200, debit freight expense 48 and credit cash 6,248 debit office equipment 6,248; credit cash 6,248 none of the above Flag this Question Question 392 pts Which of the following is NOT a class under MACRS for personal property? 5 year class 7 year class 10 year class 27.5 year class Flag this Question Question 402 pts A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the straight-line method, the balance in the accumulated deprecation account, after the second year, will be $9,000 $18,000 $10,000 $20,000 Flag this Question Question 412 pts An asset that cost $25,000 was sold for $8,000 cash. Accumulated depreciation on the asset was $16,000. The entry to record this transaction includes the recognition of a gain of $8,000. a loss of $1,000. neither a gain nor a loss. a gain of $1,000. Flag this Question Question 422 pts An asset that cost $14,000 was sold for $9,000 cash. Accumulated depreciation on the asset was $7,000. The entry to record this transaction includes the recognition of a gain of $2,000. a loss of $5,000. neither a gain nor a loss. a loss of $2,000. Flag this Question Question 432 pts When journalizing the sale of Office Furniture Cash is the only account debited Cash and Accumulated Depreciation-Office Furniture are debited Accumulated Depreciation is credited Office Furniture is debited Flag this Question Question 442 ptsSkip to question text. In 2013 a mining company paid $150,000 for mining rights. It is estimated that a total of 200,000 tons of ore are available to be extracted. During 2013, 18,000 tons of ore were mined. What is the amount of Depletion Expense recorded in the adjusting entry for 2013? $24,000 $13,500 $150,000 none of the above Flag this Question Question 452 pts The allocation of the costs of natural resources, such as minerals, to the units produced is referred to as depreciation depletion amortization salvage value Flag this Question Question 462 pts C Coal Company purchased the coal rights in an area for $4,050,000. They estimated that the area contained 9,000,000 tons of coal. The first year of operations in the area yielded 110,000 tons of coal. What is the depletion for the first year? $4,050,00 $49,500 $244,200 None of the above Flag this Question Question 472 pts An impairment has been recorded on an asset. It is later sold for a gain. Which of the following is false? The sale of the asset is recorded as any other sale The amount charged-off is reinstated prior to recording the sale The gain is recorded None of the above is false - all are true. Flag this Question Question 482 pts Impairment does not need to be recorded in the journal must be recorded in the journal is noted but not recorded none of the above Flag this Question Question 492 pts All of the following refer to the handling of a decline in value of property, plant, and equipment except depreciation. impairment. realization principle. conservatism constraint. Flag this Question Question 502 ptsSkip to question text. Information about the Maxwell Company's inventory of one item during 2013 is given below. UnitsUnit Cost Beginning Inventory, Jan 1, 201380$24 Purchases: March 201345$24 July 201375$22 November 2013100$21 Ending Inventory, Dec 31, 201355 Compute the cost of goods sold under the average cost method $6,750 $5,430 $5,512.50 $5,595

Question 14 pts Bond purchasers will always pay the face value to purchase a bond may pay more or less than face value to purchase a bond not know the amount they are paying for the bond none of the above Flag this Question Question 24 pts Bond interest rates must be adjustable must be fixed can be adjustable or fixed none of the above Flag this Question Question 34 pts Bonds differ from stocks in that they are classified as a debt must be repaid have a maturity date all of the above Flag this Question Question 44 pts Which of the following is not a disadvantage of raising capital through the issue of bonds payable? the bonds are classified as a long-term liability interest must be paid even if the firm suffers a loss the face amount must be repaid at maturity interest is deductible for income tax purposes Flag this Question Question 54 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a debit to the Cash account for $408,000. $400,000. $398,000. $392,000. Flag this Question Question 64 pts The corporation must maintain a subsidiary ledger showing who owns the bonds and is entitled to receive interest payments if the bonds are coupon bonds. registered bonds. bearer bonds. unregistered bonds. Flag this Question Question 74 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a credit to the Bonds Payable account for $408,000. $392,000. $400,000. $398,000. Flag this Question Question 84 pts Bonds with a face value of $400,000 were issued at 98. The entry to record the issuance will include a debit to the Discount on Bonds Payable account for $2,000. $4,000. $6,000. $8,000. Flag this Question Question 94 pts The issuing corporation ___________________ the bond discount from the date of issue to the maturity date. Here a bond issued at a discount will increases the bond interest expense shown on the income statement records discounts omits amortizes Flag this Question Question 104 pts If bonds are issued for a price below their face value, the bond discount should be charged to expense on the date the bonds are issued. amortized over the life of the bond issue. shown as an addition to Bonds Payable in the Long-Term Liabilities section of the balance sheet. shown as a current liability on the balance sheet. Flag this Question Question 114 pts The amortization of the bond discount __________ the carrying value of the bond, while the amortization of the bond premium __________ the carrying value of the bond. decreases, increases increases, decreases increases, increases decreases, decreases Flag this Question Question 124 ptsSkip to question text. On December 31, 2013, a corporation issued $200,000 face value, 12 percent bonds that mature 10 years from the date of issue. The issue price was 103. If the firm uses the straight-line method of amortization, interest expense for 2014 will be reported at $24,600. $24,000. $23,400. $19,400. Flag this Question Question 134 ptsSkip to question text. A bond sinking fund investment is started on January 5, 2013, by transferring $12,000 in cash to the fund. This $12,000 is invested and earns $1,500 during 2013. On January 5, 2014, the amount of cash transferred to the sinking fund investment will be $10,500. $12,000. $13,500. $1,500. Flag this Question Question 144 pts Retained Earnings Appropriated for Bond Retirement appears as a separate line item on the Income Statement. on the Balance Sheet. on the Bond Interest Reconciliation Schedule. on the Statement of Cash Flows. Flag this Question Question 154 pts A bond sinking fund investment is started on January 5, 2013, by transferring $10,000 in cash to the fund. This $10,000 is invested and earns $1,100 during 2013. The entry to record the earnings made on the sinking fund investment includes a debit to Cash for $1,100 and a credit to Income from Sinking Fund Investment for $1,100. a debit to Cash for $1,100 and a credit to Bond Sinking Fund Investment for $1,100. a debit to Bond Sinking Fund Investment for $1,100 and a credit to Income from Sinking Fund Investment for $1,100. a debit to Cash for $1,100 and a credit to Interest Income for $1,100. Flag this Question Question 164 ptsSkip to question text. Twee Corporation creates a bond sinking fund on July 1, 2013, the first day of its fiscal year in preparation of payment of principal of $300,000 due in six years. Twee makes a $50,000 cash deposit into the account and invests it in an oil stock fund. During the year, $4,400 is earned on this investment. Fund administrative expenses for this fund amount to $50. What is the journal entry to record earnings on this investment? debit Bond Sinking Fund Investment for $4,400 and credit Income from Sinking Fund Investment for $4,400 debit Bond Sinking Fund Investment for $4,350 and credit Income from Sinking Fund Investment for $4,350 debit Bond Sinking Fund Investment for $4,350, debit Administrative Expenses for $50 and credit Income from Sinking Fund Investment $4,400 None of the above Flag this Question Question 174 pts A planned fund established to accumulate assets to pay off bonds when they mature is called a bond ____________________ fund investment. planning repayment sinking none of the above Flag this Question Question 183 pts Which of the following statements is correct? Market value is the figure selected by the organizers of the corporation to be assigned to each share of stock for accounting purposes. If there is only one class of stock, the stock is called preferred stock. The authorized capital stock is the number of shares that have been issued and are still in the hands of stockholders. In the event of liquidation, preferred stockholders have a claim on assets before that of common stockholders. Flag this Question Question 193 pts Subchapter S corporations have the disadvantage of double taxation. require that shareholders report their share of profits on their partnership tax returns. have the advantage that shareholders can take part in policy and operating decisions. are entities formed as corporations but are treated essentially as a partnership so the corporation pays no income tax. Flag this Question Question 203 pts Which of the following statements is correct? Shareholders have personal liability for a corporation's debts. Shareholders must obtain the consent of other shareholders to sell their shares or buy more shares. Limited liability partnership (LLP) partners have liability for their own actions and the actions of those under their control or supervision. Shareholders are legally prohibited from acting as an officer or employee of a corporation. Flag this Question Question 213 ptsSkip to question text. Santorini Corporation has outstanding 300,000 shares of $70 par-value preferred stock, issued at an average price of $84 a share. The preferred stock is convertible into common stock at the rate of four shares of common stock for each share of preferred stock. Maryann Miller owns 880 shares of the preferred stock. During the current year she decides to convert 220 shares into common stock. How many shares of common stock will she receive? 220 shares 880 shares 300,000 shares 1,200,000 shares Flag this Question Question 223 ptsSkip to question text. The Maynard Corporation has outstanding 10,000 shares of 10 percent, $50 par-value, cumulative, nonparticipating preferred stock and 80,000 shares of $10 par-value common stock. The board of directors voted to distribute $40,000 as dividends in 2013, $55,000 in 2014, and $65,000 in 2012. What is the total dividend paid to preferred stockholders in 2013? $10,000 $20,000 $30,000 $40,000 Flag this Question Question 233 ptsSkip to question text. A corporation has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 parvalue common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of $1.00 a share. $1.60 a share. $2.00 a share. $2.40 a share. Flag this Question Question 243 pts A corporation received a subscription for 200 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions Receivable Preferred for $20,600 and a credit to Preferred Stock for $20,000 and a credit to Retained Earnings for $600. Preferred Stock Subscribed for $20,000 and a credit to Gain on Sale of Preferred Stock for $600. Preferred Stock Subscribed for $20,000 and a credit to Paid-in Capital in Excess of Par Value Preferred Stock for $600. Preferred Stock Subscribed for $20,600. Flag this Question Question 253 pts An investor agrees to pay a preferred stock subscription in two monthly installments. Each collection will include a debit to Cash and a credit to Preferred Stock. Preferred Stock Subscribed. Subscriptions ReceivablePreferred. Common Stock Subscribed. Flag this Question Question 263 pts The entry to record the issuance of 500 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $7,000 and a credit to Common Stock for $5,000 and a credit to Treasury Stock for $2,000. $5,000 and a credit to Paid-in Capital in Excess of Par ValueCommon Stock for $2,000. $5,000 and a credit to Gain on Sale of Common Stock for $2,000. $7,000. Flag this Question Question 273 pts Which of the following statements is not correct? The Paid-in Capital in Excess of Par ValueCommon Stock account appears in the Stockholders' Equity section of the balance sheet. The Subscriptions Receivable account is shown in the Stockholders' Equity section of the balance sheet. The balance of the Common Stock account appears in the Stockholders' Equity section of the balance sheet. The balance of the Preferred Stock account appears in the Stockholders' Equity section of the balance sheet. Flag this Question Question 283 pts The net income reported for federal income tax purposes must be the same as reported for financial accounting purposes can be different that net income reported for financial accounting purposes is not reported to the IRS none of the above Flag this Question Question 293 pts The Paid-in Capital in Excess of Par ValuePreferred Stock account would be shown in the Assets section of the balance sheet. Stockholders' Equity section of the balance sheet. Revenue section of the income statement. Expense section of the income statement. Flag this Question Question 303 ptsSkip to question text. After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Carlton Corporation, the net income is determined to be $50,000. Using the following corporate income tax rates, compute the corporation's federal income taxes payable. (Assume that the firm's taxable income is the same as its income for financial accounting purposes.) Taxable Income Tax Rate First $50,000 15% Next $25,000 25% Next $25,000 34% Next $235,000 39% Over $335,000 See IRS Publication $0 $3,250 $7,500 None of the above Flag this Question Question 313 pts When closing Income Summary for a corporation, the balance is transferred to Stockholders' Equity Retained Earnings Cash None of the above Flag this Question Question 323 pts A corporation has paid estimated income taxes of $57,500 during the year 2013. At the end of the year, the corporation's tax bill is computed to be $52,100. The journal entry to record the adjustment would be: Debit Income Tax Refund $5,400; credit Income Tax Expense $5,400 Debit Income Tax Expense $5,400; credit Income Tax Payable $5,400 Debit Income Tax Refund $5,400; credit Cash $5,400 None of the above Flag this Question Question 333 pts The entry to record the declaration of a cash dividend consists of a debit to Dividend Expense and a credit to Cash. Retained Earnings and a credit to Common Stock Dividend Distributable. Dividends Payable and a credit to Retained Earnings. Retained Earnings and a credit to Dividends Payable. Flag this Question Question 343 pts Total stockholders' equity would be decreased by a stock split. an appropriation of retained earnings. a cash dividend. a stock dividend. Flag this Question Question 353 ptsSkip to question text. A corporation reported a net income of $90,000 for its fiscal year and declared and paid cash dividends of $60,000. A stock dividend recorded at $30,000 was also distributed during the year. If the beginning balance of the Retained Earnings account was $140,000, the ending balance is $230,000. $170,000. $140,000. $130,000. Flag this Question Question 362 pts An example of real property is machinery. factory equipment. computer equipment. buildings. Flag this Question Question 372 pts The cost of an intangible asset should be immediately charged to expense if the cost was incurred to develop the intangible asset. should be immediately charged to expense whether the intangible asset was developed internally or purchased. should be recorded as an asset whose cost, like the cost of land, will not be allocated to expense. should be charged to expense over the life of the intangible asset. Flag this Question Question 382 pts What is the journal entry to record the following transaction? Purchased office equipment for $6,000. The freight charge was $48 and installation charge was $200 debit office equipment 6,000, debit freight expense $48, debit installation expense $200; credit Cash 6,248 debit office equipment 6,200, debit freight expense 48 and credit cash 6,248 debit office equipment 6,248; credit cash 6,248 none of the above Flag this Question Question 392 pts Which of the following is NOT a class under MACRS for personal property? 5 year class 7 year class 10 year class 27.5 year class Flag this Question Question 402 pts A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the straight-line method, the balance in the accumulated deprecation account, after the second year, will be $9,000 $18,000 $10,000 $20,000 Flag this Question Question 412 pts An asset that cost $25,000 was sold for $8,000 cash. Accumulated depreciation on the asset was $16,000. The entry to record this transaction includes the recognition of a gain of $8,000. a loss of $1,000. neither a gain nor a loss. a gain of $1,000. Flag this Question Question 422 pts An asset that cost $14,000 was sold for $9,000 cash. Accumulated depreciation on the asset was $7,000. The entry to record this transaction includes the recognition of a gain of $2,000. a loss of $5,000. neither a gain nor a loss. a loss of $2,000. Flag this Question Question 432 pts When journalizing the sale of Office Furniture Cash is the only account debited Cash and Accumulated Depreciation-Office Furniture are debited Accumulated Depreciation is credited Office Furniture is debited Flag this Question Question 442 ptsSkip to question text. In 2013 a mining company paid $150,000 for mining rights. It is estimated that a total of 200,000 tons of ore are available to be extracted. During 2013, 18,000 tons of ore were mined. What is the amount of Depletion Expense recorded in the adjusting entry for 2013? $24,000 $13,500 $150,000 none of the above Flag this Question Question 452 pts The allocation of the costs of natural resources, such as minerals, to the units produced is referred to as depreciation depletion amortization salvage value Flag this Question Question 462 pts C Coal Company purchased the coal rights in an area for $4,050,000. They estimated that the area contained 9,000,000 tons of coal. The first year of operations in the area yielded 110,000 tons of coal. What is the depletion for the first year? $4,050,00 $49,500 $244,200 None of the above Flag this Question Question 472 pts An impairment has been recorded on an asset. It is later sold for a gain. Which of the following is false? The sale of the asset is recorded as any other sale The amount charged-off is reinstated prior to recording the sale The gain is recorded None of the above is false - all are true. Flag this Question Question 482 pts Impairment does not need to be recorded in the journal must be recorded in the journal is noted but not recorded none of the above Flag this Question Question 492 pts All of the following refer to the handling of a decline in value of property, plant, and equipment except depreciation. impairment. realization principle. conservatism constraint. Flag this Question Question 502 ptsSkip to question text. Information about the Maxwell Company's inventory of one item during 2013 is given below. Units Unit Cost Beginning Inventory, Jan 1, 2013 80 $24 Purchases: March 2013 45 $24 July 2013 75 $22 November 2013 100 $21 Ending Inventory, Dec 31, 2013 55 Compute the cost of goods sold under the average cost method $6,750 $5,430 $5,512.50 $5,595 Flag this Question Question 512 pts The weighted average cost of an inventory item is calculated by dividing the sum of the unit cost on the purchase invoices by the number of units purchased. dividing the cost of goods available for sale by the number of units on the ending inventory. dividing the cost of goods available for sale by the number of units available during the period. dividing the cost of goods sold by the number of units available during the period. Flag this Question Question 522 pts A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $16,000. Early in the year, 8,000 units were purchased at $6 each. Using LIFO, what is the value of the ending inventory of 2,000 units? $12,000 $10,000 $8,000 $24,000 Flag this Question Question 532 pts A price reduction below the original markon is ________________. markup profit markdown price Flag this Question Question 542 pts The ________________ method of inventory costing must be used for financial accounting purposes if it is chosen for federal income tax purposes. LIFO FIFO Average Cost Specific Identification Flag this Question Question 552 pts If other items remain the same, the larger the ending inventory valuation, the higher the cost of goods sold. higher the reported net income. lower the reported gross profit on sales. lower the reported net income. Flag this Question Question 562 pts The Lower of Cost or Market rule is based on which accounting principle? conservatism revenue recognition matching full disclosure Flag this Question Question 572 pts Which of the following is NOT a way to apply the lower of cost or market rule? by item by size in total by group Flag this Question Question 582 pts What is the lower of total cost or total market by department? $9,193 $9,253 $9,000 none of the above Flag this Question Question 592 pts The ____________________ method of estimating ending inventory involves estimating the cost of goods sold by applying a company's cost/sales ratio to its sales for the current period. lower of cost or market LIFO average cost gross profit Flag this Question Question 602 pts The gross profit method of determining ending inventory cost can be used without taking a physical count of merchandise. provides accurate information about the number of units in inventory. requires that a firm keep inventory and purchases data at retail value as well as at cost. requires that the inventory be classified into groups of items of about the same rate of mark on. Flag this Question Question 612 pts The merchandise available for sale cost a company $90,000 and was marked to sell at a retail price of $125,000. Sales during the period totaled $80,000. If the retail method is used, the estimated cost of the ending inventory is $32,400. $12,600. $22,400. $45,000. Flag this Question Question 622 pts The merchandise available for sale cost a company $90,000 and was marked to sell at a retail price of $125,000. Sales during the period totaled $80,000. If the retail method is used, the estimated cost of the ending inventory is $32,400 $12,600 $22,400 $45,000 Flag this Question Question 632 pts The difference between the cost and the initial retail price of merchandise is markup. markon. markdown. market price Flag this Question Question 642 pts Cost ratio is calculated by dividing merchandise available for sale at cost by merchandise available for sale at retail. dividing merchandise available for sale at retail by merchandise available for sale at cost. dividing net retail sales by the cost of the merchandise sold. dividing the cost of merchandise sold by net retail sales. Terms of service Facebook Twitter