COMPREHENSIVE QUESTION 13 (ACTUAL) COMPREHENSIVE QUESTION 13 (ACTUAL) 2. The furniture was purchased for $35,000. It has $0 salvage value and a 5 year useful life. One year of depreciation must be recorded. 3. $3,000 of insurance was purchased for 12 months. $1,800 of insurance was used. 4. Performed $27,000 of services that was paid for in advance 5. On last day of the month, performed $26,100 of services for new customer and will be paid next month 6. Happy cleaners provided $19,000 of cleaning services on the last day of the month. This waas a special yearly clean. They will be paid next month. 7. An inventory count revealed there was $4,000 of inventory shrinkage. This was a larger than usual amount of shrinkage. 8. The company estimates bad debt expense to be 3% of credit sales. Assume all sales are made on credit. 9. A company with net assets of $100,000 was purchased for $210,000 one year ago. The current fair value of the company is 180,000 . Perform a goodwill impairment test and record an impairment entry if one is needed. 10. The company had a calculated warranty expense of 14,000 on oustanding sales 11. The company sold an additional 10,000 shares at a market price of $19. The par value of the stock is $1. 12. The company purchased 1,000 of its own shares at a market price of $23. COMPREHENSIVE QUESTION 13 (ACTUAL) COMPREHENSIVE QUESTION 13 (ACTUAL) 2. The furniture was purchased for $35,000. It has $0 salvage value and a 5 year useful life. One year of depreciation must be recorded. 3. $3,000 of insurance was purchased for 12 months. $1,800 of insurance was used. 4. Performed $27,000 of services that was paid for in advance 5. On last day of the month, performed $26,100 of services for new customer and will be paid next month 6. Happy cleaners provided $19,000 of cleaning services on the last day of the month. This waas a special yearly clean. They will be paid next month. 7. An inventory count revealed there was $4,000 of inventory shrinkage. This was a larger than usual amount of shrinkage. 8. The company estimates bad debt expense to be 3% of credit sales. Assume all sales are made on credit. 9. A company with net assets of $100,000 was purchased for $210,000 one year ago. The current fair value of the company is 180,000 . Perform a goodwill impairment test and record an impairment entry if one is needed. 10. The company had a calculated warranty expense of 14,000 on oustanding sales 11. The company sold an additional 10,000 shares at a market price of $19. The par value of the stock is $1. 12. The company purchased 1,000 of its own shares at a market price of $23
