Question
HELP PLEASE!!! 1.Lonzo Company sold equipment that cost $50,000 and had a book value of $22,000 for $30,000. If Lonzo uses a worksheet to help
HELP PLEASE!!!
1.Lonzo Company sold equipment that cost $50,000 and had a book value of $22,000 for $30,000. If Lonzo uses a worksheet to help prepare its Statement of Cash Flows, what would be entered in the bottom portion of the reconciling columns?
A) $2,000 credit and $30,000 debit
B) $8,000 debit and $50,000 credit
C) $8,000 credit and $30,000 debit
D) $2,000 credit and $50,000 debit
2.How is the issuance of a short-term note payable reported on the Statement of Cash Flows?
A) Nontrade - Financing activity; Trade - Financing activity
B) Nontrade - Financing activity; Trade - Adjustment to net income in operating activities
C) Nontrade - Adjustment to net income in operating activities; Trade - Adjustment to net income in operating activities
D) Nontrade - Adjustment to net income in operating activities; Trade - Financing activity
3. Coleman Inc. purchased a patent on January 1, 2023 for $400,000. Coleman did not record amortization expense on the patent for 2023 and 2024. At the purchase date, the expected useful life of the patent was 10 years. At December 31, 2025, what should be recorded as the Amortization Expense?
A) $80,000
B) $0 because the value of the patent has not decreased
C) $40,000
D) $120,000
4.Coleman Inc. purchased a patent on January 1, 2023 for $400,000. Coleman did not record amortization expense on the patent for 2023 and 2024. At the purchase date, the expected useful life of the patent was 10 years. Ignoring income tax considerations, what is the entry made on December 31, 2025?
A) Amortization Expense 40,000 Retained Earnings 80,000 Accumulated Depreciation 120,000
B) Retained Earnings 120,000 Patent 120,000
C) Amortization Expense 40,000 Retained Earnings 80,000 Patent 120,000
D) Amortization Expense 120,000 Patent 120,000
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