Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the

On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8)

If the company sells the machine at the end of 5 years and receives $11,000, the journal entry to record the sale will include which of the following?

Question 8 options:

Debit to Accumulated Depreciation for $138,000

Credit to Machine for $138,000

Debit to Loss on Sale for $500

Credit to Gain for $500

Employers withhold which of the following from employee's paychecks

Question 16 options:

LFRA

FICA

Unemployment Tax

All of the Above

Employers withhold which of the following from employee's paychecks

Question 16 options:

LFRA

FICA

Unemployment Tax

All of the Above

On October 1, your company borrows $200,000 in order to build a new factory. The loan is for 10 years, at 7% interest, and semiannual interest payments are due each April and October. The journal entry to record the issuance of the promissory note should:

Question 20 options:

debit Notes Payable for $200,000, debit Interest Expense for $14,000, credit Cash for $200,000, and credit Interest Payable for $14,000

debit Accrued Interest for $14,000 and credit Cash for $14,000

debit Cash for $200,000 and credit Notes Payable for $200,000

debit Cash for $200,000, debit Interest Expense for $14,000, credit Notes Payable for $200,000, and credit Interest Payable $14,000.

Which of the following are generally recorded as liabilities on the balance sheet?

Question 24 options:

Remote likelihood liabilities.

Possible contingent liabilities.

Probable contingent liabilities.

Immaterial contingent liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is the OPEB obligation and how is it determined?

Answered: 1 week ago