Machinery was purchased on January 1 for $66,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be

a. $14,469.39

b. $13,469.39

c. $12,969.39

d. $12,469.39

1. Allowance for Doubtful Accounts has a debit balance of $405 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 2% of sales. If net credit sales are $915,700, the amount of the adjusting entry to record the estimate of the uncollectible accounts is

a. $405

b. $17,909

c. $18,314

d. $18,719

2. A used machine with a purchase price of $37,502, requiring an overhaul costing $8,630, installation costs of $4,383, and special acquisition fees of $3,624, would have a cost basis of

a. $37,502

b. $54,139

c. $46,132

d. $70,776

3. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $262,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,800 before adjustment?

a.

Bad Debt Expense	12,920
Allowance for Doubtful Accounts		12,920

b.

Bad Debt Expense	11,920
Allowance for Doubtful Accounts		11,920

c.

Bad Debt Expense	12,420
Allowance for Doubtful Accounts		12,420

d.

Bad Debt Expense	13,920
Allowance for Doubtful Accounts		13,920

4. The following totals for the month of April were taken from the payroll register of Magnum Company.

Salaries	$12,000
FICA taxes withheld	900
Income taxes withheld	2,500
Medical insurance deductions	450
Federal unemployment taxes	32
State unemployment taxes	216

The entry to record accrual of employer's payroll taxes would include a

a. debit to FICA Taxes Payable for $1,800

b. credit to Payroll Tax Expense for $248

c. debit to Payroll Tax Expense for $2,500

d. debit to Payroll Tax Expense for $1,14

5. Allowance for Doubtful Accounts has a debit balance of $901 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,612. Which of the following entries records the proper adjusting entry for bad debt expense?

a. debit Bad Debt Expense, $14,711 credit Allowance for Doubtful Accounts, $14,711

b. debit Bad Debt Expense, $901 credit Allowance for Doubtful Accounts, $901

c. debit Bad Debt Expense, $16,513 credit Allowance for Doubtful Accounts, $16,513

d. debit Allowance for Doubtful Accounts, $15,612 credit Bad Debt Expense, $15,612

6. Equipment with a cost of $140,493 has an estimated residual value of $9,357 and an estimated life of 6 years or 12,090 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,807 hours?

a. $6.00

b. $41,293.20

c. $34.45

d. $21,856.00

7. The Weber Company purchased a mining site for $616,527 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 87,111 tons will be recovered. During the first year the company extracted 6,445 tons of ore. The depletion expense is

a. $48,750.00

b. $56,777.70

c. $42,007.59

d. $45,630.60