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11_ Ashraf Company sells 6,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit. In the year of sale, warranty contracts are honored on 120 units for a total cost of $6,000. What amount should Lulzbot.com accrue on December 31 for estimated warranty costs?

Select one:

a. $45,000

b. $6,000

c. The answer does not exist

d. $9,000

e. $3,000

___________________

12_ The cash account shows a balance of $85,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customers check for $680 was returned because it was NSF. A customers check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $183. The correct balance in the cash account was

Select one:

a. $87,400.

b. $86,585.

c. $86,540.

d. The answer does not exist

e. $95,350.

_________________

13_ Watunga County Bank agrees to lend Hoffman Granite Company $600,000 on January 1. Hoffman Granite Company signs a $60,000, 6%, 9-month note. The entry made by Hoffman Granite on January 1 to record the proceeds and issuance of the note is

Select one:

a. The answer does not exist

b.

Cash............................................................... 600,000

Interest Expense.............................................. 36,000

Notes Payable .......................................... 600,000

Interest Payable .......................................36,000

c.

Cash........................................................ 600,000

Notes Payable .......................................................... 600,000

d.

Cash................................................................ 600,000

Interest Expense............................................ 36,000

Notes Payable ...................................................... 636,000

e.

Interest Expense..................................................... 36,000

Cash..................................................................... 564,000

Notes Payable ...................................................... 600,000

______________________

14_ ROS Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used, is:

Select one:

a. $156,000.

b. $78,000.

c. The answer does not exist

d. $160,000.

e. $80,000.

_________________

15_ Yanik Company's delivery truck, which originally cost $84,000, was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $57,000. The company received $48,000 reimbursement from its insurance company. The gain or loss as a result of the fire was

Select one:

a. $36,000 gain.

b. $21,000 gain.

c. The answer does not exist

d. $21,000 loss.

e. $36,000 loss.

____________

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