On 1 January 2020, X company borrowed 4-year $10000 zero-interest bearing notes from Arab bank. The interest is payable on December 31. The implicit interest rate is 0.08. X uses the straight-line method. The adjusting entry on 31 December 2020 includes

a.

Credit discount on notes payable 662

b.

Debit discount on notes payable 2650

c.

Credit discount on notes payable 2650

d.

Debit discount on notes payable 662

The following information is related to X Corporation for the fiscal year 2019: The numbers of issued common shares is 155000 shares. On 2 December 2019, the board of directors declared $0.11 cash dividends per share. On 3 March 2020, X paid cash dividends to common stocks investors. The value of dividends

a.

15500

b.

18300

c.

17050

d.

20000

Clear my choice

X Company purchased land from Y Company in exchange of common stocks. X issued 6000 shares of common stocks to Y. The par value per share is $13 and the fair market value is unknown. The fair market value of land is 88,000. The journal entry is

a.

Dr. Land 90,000, Cr. Common Stocks 72,000 and Cr. Paid-in Capital 18,000

b.

Dr. Land 88,000, Cr. Common Stocks 78,000 and Cr. Paid-in Capital 10,000

c.

Dr. Land 90,000, Cr. Common Stocks 78,000 and Cr. Paid-in Capital 12,000

d.

Dr. Land 90,000 and Cr. Common Stocks 90,000

Clear my choice

X acquires a coalmine at a cost of $1,660,000. Intangible development costs total $540,000. The salvage value is $510,000. X estimates that 6,000 tons of coal can be extracted. If 900 tons are extracted the first year, which of the following would be included in the journal entry to record depletion?

a.

Debit to Inventory for $229,500

b.

Credit to Accumulated Depletion for $382,500

c.

Debit to Accumulated Depletion for $229,500

d.

Debit to Inventory for $253,500