Please answer the following questions, Thanks!

Question 1

Instructions: Designate the best answer for each of the following questions. Use the following data for questions 1 and 2 below: Chan Company bought real estate, on which there was an old ofce building, for $700,000. They paid $70,000 in cash as a down payment and signed a 6% mortgage for the remainder. They immediately had the old building razed at a net cost of $35,000. Lawyers were paid $6,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Chan's new ofce building. $20,000 was paid for excavation for the basement of the new building, $1,500,000 was paid for construction of the new building, and $75,000 was paid for a parking lot and necessary walkways and driveways. 1. The new ofce building should be recorded at a. $1,500,000. b. $1,523,000. c. $1,520,000. d $1,558,000. 2. Land should be recorded at a cost of a. $735,000. b. $741,000. c. $764,000. d $761,000. 3. Juan's Retail Store regularly makes payments to the Receiver General for the sales taxes resulting from its sales to customers. These sales taxes should appear on Juan's income statement as an expense. are based upon a company's gross prot in most provinces. are long-term liabilities when they have been paid. are collected by Juan's as an agent for the government's taxing authority. 99?? 4. Friedmans Corporation borrowed $180,000 on March 1, 2001, signing a one year, 10% note payable to Canada Bank. The adjusting entry required on December 31, 2001, includes a debit to Interest Expense of $15,000. debit to Cash of $180,000. credit to Interest Revenue of $15,000. debit to Interest Payable of $18,000. 9999 Mandatory payroll deductions include federal and provincial income tax withholdings, deductions for charitable oontri-butions, and Employment Insurance (El). b. federal and provincial income tax withholdings, Employment Insurance (El), and union dues. c. federal and provincial income tax withholdings, pension plan deductions (CPP or OPP), and Employment Insurance (El). d. federal and provincial income tax withholdings, pension plan deductions (CPP or OPP), and private health insurance remittances. 9'5" 6. When recording assets in a basket purchase, the cost of each asset is determined a. multiplying total cost by the proportion that each asset is of the total appraisal value. b. dividing the total cost equally between the assets. c. using the appraisal values as the initial cost of each asset. d. none of the above methods. 7. Gains on sales of assets a. are reported on the income statement for the period when the sale takes place. b. are equal to the difference between the cost of the asset sold and its net book value. c. are treated as a reduction in the operating costs of the period. d. occur if the net book value of the asset sold is more than its fair market value. 8. Contingent liabilities a. need not be disclosed if the possibility that the contingency will occur is remote. b. are recorded as liabilities if they can be estimated and are remote. c. are disclosed only if they are probable. d. are always recorded as liabilities if the possibility that the contingency will occur is high. 9. On June 30, 2001, Darjani Enterprises sold equipment with an original cost of $99, 000 for $40, 000. The equipment was purchased January 1, 2000, and was amortized using the straight-line method assuming a ve year useful life and $9, 000 salvage value. The necessary entries for 2001 include a debit to Accumulated AmortizationEquipment for $18,000. credit to Gain on Sale of Equipment for $32,000. credit to Cash for $40,000. debit to Amortization Expense for $9,000. 9999 10. Which of the following is not an intangible asset? a. Research and development costs b. Copyrights c. Organization costs d. Goodwill 11. The three primary accounting problems associated with accounts receivable are a. valuation, disposition, and statement presentation. b. recognition, valuation, and statement presentation. c. recognition, valuation, and disposition. d. revenue recognition, matching, and statement presentation. 12. Allowance for Doubtful Accounts is presented as a(n) a addition to Accounts Receivable on the balance sheet. b. operating expense on the income statement. 0 deduction from Sales on the income statement. d oontra asset on the balance sheet. 13. Which of the following methods and bases of accounting for uncollectible accounts receivable is inconsistent with the proper application of matching? a. Direct write-off method b. Aging of receivables allowance method c. Percentage of receivables basis d. Percentage of sales basis 14. Ritter Company has a balance of $80,000 in Accounts Receivable and a $4,000 credit balance in Allowance for Doubtful Accounts. If a specic customer's account with a balance of $500 is written off as uncollectible, the net realizable value of the accounts receivable will be a. $75,500. b. $76,000. 0. $76,500. d. $79,500. Instructions: Match the cash expenditures given below with the appropriate accounting treat-ment. An individual classication may be used more than once, or not at all. Treatments A. Record the expenditure as an asset and amortize it. B. Record the expenditure as an asset but do not systematically allocate it to expense. 0. Record the expenditure as an expense in the current period. D. None of the above is appropriate. Expenditures 1. Acquired a truck. 2. Incurred research costs in a search for a headache cure. 3. Paid for minor repairs to a building. 4. Purchased a producing gold mine. 5. Paid lawyers fees in acquiring land