Please help me with these accounting questions. Thank you!

Question 1 Renfro Corporation purchased for $765,000 a tract of land on which was located a warehouse and an office building. The following information is available concerning the property that was purchased: Current Market Value Land .................... $300,000 Warehouse ............... 200,000 Office building ......... 400,000 What are the appropriate amounts that Renfro should record in its balance as the cost of the land, warehouse, and office building, respectively. sheet land $255,000; warehouse $155,000; office building $355,000 land $300,000; warehouse $200,000; office building $400,000 land $273,214; warehouse $163,929; office building $327,857 land $255,000; warehouse $170,000; office building $340,000 land $345,000; warehouse $230,000; office building $460,000 Question 2 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. Assume Betty DeRose depreciates its assets using the sum-of-the-years-digits' method of depreciation. Calculate the book value of the machine at December 31, 2019. Do not use decimals in your answer. Question 3 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. Assume Betty DeRose depreciates its assets using the double declining balance method of depreciation. Calculate the amount of accumulated depreciation related to the machine that would appear in Betty's December 31, 2020 balance sheet. Do not use decimals in your answer. Question 4 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. It is known that the machine is expected to be used for a total of 500,000 hours over its expected life. Assume Betty DeRose depreciates its assets using the units of production method of depreciation. The following financial statement amounts relate to the machine: Book value at December 31, 2018 ....................... $133,700 Depreciation expense for 2020 ......................... 17,490 Accumulated depreciation at December 31, 2020 ......... 69,960 Calculate the number of hours that the machine was used in 2019. Enter your answer as a number (i.e., 65,000). Do not use the $ or decimals in your answer. Additionally, do not type the word hours after your answer. Question 5 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory 41,000 Accounts payable 46,000 Long-term notes payable Income tax payable Investments Accounts receivable 130,000 11,000 89,000 83,000 December 31, 2018 57,000 69,000 165,000 7,000 68,000 77,000 Land 60,000 Common stock 89,000 100,000 Retained earnings 150,000 29,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $415,000 Cost of goods sold 373,000 Gain on sale of investments 11,000 Income tax expense 16,000 Net income $ 37,000 Calculate the amount of cash paid for income taxes during 2018. Do not use decimals in your answer. Question 6 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory 41,000 Accounts payable 46,000 Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings December 31, 2018 57,000 69,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $415,000 Cost of goods sold 373,000 Gain on sale of investments 11,000 Income tax expense 16,000 Net income $ 37,000 Calculate the amount of cash collected from customers during 2018. Do not use decimals in your answer. Question 7 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory 41,000 Accounts payable Investments Accounts receivable Land Common stock Retained earnings 57,000 46,000 Long-term notes payable Income tax payable December 31, 2018 69,000 130,000 165,000 11,000 7,000 89,000 68,000 83,000 60,000 77,000 89,000 100,000 29,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $415,000 Cost of goods sold 373,000 Gain on sale of investments 11,000 Income tax expense Net income 16,000 $ 37,000 Calculate the amount of cash paid to suppliers for purchases of inventory during 2018. Do not use decimals in your answer. Question 8 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory 41,000 Accounts payable Investments Accounts receivable Land Common stock Retained earnings 57,000 46,000 Long-term notes payable Income tax payable December 31, 2018 69,000 130,000 165,000 11,000 7,000 89,000 68,000 83,000 60,000 77,000 89,000 100,000 29,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $415,000 Cost of goods sold 373,000 Gain on sale of investments 11,000 Income tax expense 16,000 Net income $ 37,000 Calculate the net cash flow from investing activities for 2018. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). Do not use decimals in your answer. Question 9 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory 41,000 Accounts payable Investments Accounts receivable Land Common stock Retained earnings 57,000 46,000 Long-term notes payable Income tax payable December 31, 2018 69,000 130,000 165,000 11,000 7,000 89,000 68,000 83,000 60,000 77,000 89,000 100,000 29,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $415,000 Cost of goods sold 373,000 Gain on sale of investments 11,000 Income tax expense 16,000 Net income $ 37,000 Calculate the net cash flow from financing activities for 2018. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). Do not use decimals in your answer. Question 10 On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000 to put the equipment in working order. The building was assigned a useful life of 25 years with a $4,000 salvage The building will be depreciated using the straight-line method. value. On August 1, 2028, XYZ Company sold the building for $108,000 cash. Calculate the amount of the loss recorded on the sale of the building. Enter your answer as a number (i.e., 2,000). Do not use a minus sign, decimals, or type the word loss after your answer. Question 11 On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000to put the equipment in working order. The equipment was assigned a useful life of 15 years with a $12,000 salvage value. The equipment will be depreciated using the straight-line method. On January 1, 2025, XYZ Company decided the life of the equipment should be revised from 15 to 25 years with a salvage value of $3,000 at the end of the 25 years. Calculate the book value of the equipment at December 31, 2027. Do not use decimals in your answer. Question 1 Renfro Corporation purchased for $765,000 a tract of land on which was located a warehouse and an office building. The following information is available concerning the property purchased: Current Market Value Land ....................... Warehouse .................. Office building ............ 300,000 200,000 400,000 What are the appropriate amounts that Renfro should record in its balance sheet as the cost of the land, warehouse, and office building, respectively? Correct Response Answer Choices a. land $255,000; warehouse $155,000; office building $355,000 b. land $300,000; warehouse $200,000; office building $400,000 c. land $273,214; warehouse $163,929; office building $327,857 d. land $255,000; warehouse $170,000; office building $340,000 e. land $345,000; warehouse $230,000; office building $460,000 Explanation: Total fair value of assets purchased = 300,000 + 200,000 + 400,000 = $900,000 Land: (300,000 900,000) x 765,000 = $255,000 Building: (200,000 900,000) x 765,000 = $170,000 Equipment: (400,000 900,000) x 765,000 = $340,000 Question 2 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. Assume Betty DeRose depreciates its assets using the sum-of-the-years-digits' method of depreciation. Calculate the book value of the machine at December 31, 2019. Correct answer $89,000 Explanation: Depreciation expense in 2017 = (170,000 - 5,000) x (10 55) = $30,000 Depreciation expense in 2018 = (170,000 - 5,000) x (9 55) = $27,000 Depreciation expense in 2019 = (170,000 - 5,000) x (8 55) = $24,000 Book value = Cost - Accumulated depreciation Book value at December 31, 2019 = 170,000 - 30,000 - 27,000 - 24,000 = $89,000 Question 3 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. Assume Betty DeRose depreciates its assets using the double declining balance method of depreciation. Calculate the amount of accumulated depreciation related to the machine that would appear in Betty's December 31, 2020 balance sheet. Correct answer $100,368 Explanation: Depreciation expense in 2017 = (170,000 - 0) x (2 10) = $34,000 Depreciation expense in 2018 = (170,000 - 34,000) x (2 10) = $27,200 Depreciation expense in 2019 = (170,000 - 61,200) x (2 10) = $21,760 Depreciation expense in 2020 = (170,000 - 82,960) x (2 10) = $17,408 Accumulated depreciation at 12/31/2020 = 34,000 + 27,200 + 21,760 + 17,408 = $100,368 Question 4 On January 1, 2017, Betty DeRose, Inc. purchased a piece of machinery for $170,000. The machine had an estimated useful life of 10 years and a salvage value of $5,000. It is known that the machine is expected to be used for a total of 500,000 hours over its expected life. Assume Betty DeRose depreciates its assets using the units of production method of depreciation. The following financial statement amounts relate to the machine: Book value at December 31, 2018 ....................... Depreciation expense for 2020 ......................... Accumulated depreciation at December 31, 2020 ......... $133,700 17,490 69,960 Calculate the number of hours that the machine was used in 2019. Correct answer 49,000 Explanation: Usage rate: (170,000 - 5,000) 500,000 = $0.33 per hour Accumulated depreciation at December 31, 2018: Cost - Accumulated depreciation 170,000 - = Accumulated depreciation Book value = 133,700 Accumulated depreciation at December 31, 2018 = 36,300 Depreciation expense for 2019: 69,960 = 17,490 + depreciation for 2019 Depreciation expense for 2019 = Hours used in 2019: 16,170 $0.33 = 49,000 hours 16,170 + 36,300 Question 5 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory Accounts payable Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings December 31, 2018 41,000 46,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 57,000 69,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue Cost of goods sold Gain on sale of investments Income tax expense Net income $415,000 373,000 11,000 16,000 $ 37,000 Calculate the amount of cash paid for income taxes during 2018. Correct answer $20,000 Explanation: Income Tax Payable 11,000 beginning balance cash paid for taxes X 16,000 income tax expense 7,000 ending balance 11,000 X = + 16,000 - cash paid for salaries cash paid for income taxes = $20,000 = 7,000 Question 6 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory Accounts payable Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings December 31, 2018 41,000 46,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 57,000 69,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue Cost of goods sold Gain on sale of investments Income tax expense Net income $415,000 373,000 11,000 16,000 $ 37,000 Calculate the amount of cash collected from customers during 2018. Correct answer $421,000 Explanation: Accounts Receivable beginning balance 83,000 sales revenue 415,000 X cash collections ending balance 77,000 83,000 X = + 415,000 - cash collections cash collections = $421,000 = 77,000 Question 7 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory Accounts payable Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings December 31, 2018 41,000 46,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 57,000 69,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue Cost of goods sold Gain on sale of investments Income tax expense Net income $415,000 373,000 11,000 16,000 $ 37,000 Calculate the amount of cash paid to suppliers for purchases of inventory during 2018. Correct answer $366,000 Explanation: Inventory beginning balance 41,000 purchases X 373,000 cost of goods sold ending balance 57,000 41,000 X = + inventory purchased inventory purchased = - 373,000 $389,000 = 57,000 now use this number in the accounts payable t-account Accounts Payable 46,000 beginning balance cash paid X 389,000 inventory purchased 69,000 ending balance 46,000 X = + 389,000 - cash paid to purchase inventory cash paid to purchase inventory = $366,000 = 69,000 Question 8 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory Accounts payable Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings December 31, 2018 41,000 46,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 57,000 69,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue Cost of goods sold Gain on sale of investments Income tax expense Net income $415,000 373,000 11,000 16,000 $ 37,000 Calculate the net cash flow from investing activities for 2018. Correct answer $3,000 Explanation: Cost of investments sold = 89,000 - Cash received from sale of investments 68,000 = = 21,000 21,000 Cash received from sale of investments ............ Cash paid to purchase land ........................ Net cash flows from investing activities .......... + 11,000 gain 32,000 3,000 = 32,000 (180,000 - 100,000) (120,000 - 95,000) Question 9 The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 Inventory Accounts payable Long-term notes payable Income tax payable Investments Accounts receivable Land Common stock Retained earnings 41,000 46,000 130,000 11,000 89,000 83,000 60,000 100,000 29,000 December 31, 2018 57,000 69,000 165,000 7,000 68,000 77,000 89,000 150,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue Cost of goods sold Gain on sale of investments Income tax expense Net income $415,000 373,000 11,000 16,000 $ 37,000 Calculate the net cash flow from financing activities for 2018. Correct answer $60,000 Explanation: Retained Earnings 29,000 beginning balance dividends paid X 37,000 net income 41,000 ending balance 29,000 X = + 37,000 - X = 41,000 dividends paid = $25,000 Cash received from issuance of common stock ....... Cash paid for dividends ........................... Cash received from long-term note payable ......... Net cash flows from financing activities .......... 50,000 35,000 60,000 (150,000 - 100,000) (see t-account above) (165,000 - 130,000) Question 10 On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000 to put the equipment in working order. The building was assigned a useful life of 25 years with a $4,000 salvage value. The building will be depreciated using the straight-line method. On August 1, 2028, XYZ Company sold the building for $108,000 cash. Calculate the amount of the loss recorded on the sale of the building. Correct answer $3,260 Explanation: Total fair value of assets purchased = 80,000 + 200,000 + 120,000 = $400,000 Cost assigned to the building = (200,000 400,000) x 380,000 = $190,000 Depreciation for years 2018 - 2027 (10 years): (190,000 - 4,000) 25 = 7,440 x 10 years 12 = 74,400 Depreciation for 2028 (7 months): (190,000 - 4,000) 25 = 7,440 Cost Accumulated depreciation Book value Selling price Loss = 190,000 78,740 111,260 108,000 3,260 620 x 7 months (74,400 + = 4,340 4,340) Question 11 On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $80,000; building $200,000; equipment $120,000. Before the property could be used, XYZ Company had to spend $6,000 to put the equipment in working order. The equipment was assigned a useful life of 15 years with a $12,000 salvage value. The equipment will be depreciated using the straight-line method. On January 1, 2025, XYZ Company decided the life of the equipment should be revised from 15 to 25 years with a salvage value of $3,000 at the end of the 25 years. Calculate the book value of the equipment at December 31, 2027. Correct answer $58,500 Explanation: Total fair value of assets purchased = 80,000 + 200,000 + 120,000 = $400,000 Cost assigned to the equipment = (120,000 400,000) x 380,000 = 114,000 + 6,000 Cost assigned to the equipment = 114,000 + 6,000 = $120,000 Depreciation for years 2018 - 2024 (7 years): (120,000 - 12,000) 15 = 7,200 per year x 7 years = $50,400 Depreciation for years 2025 - 2027 (3 years): (120,000 - 50,400 - 3,000) (25 - 7) = 3,700 per year x 3 years = $11,100 Cost Accumulated depreciation Book value 120,000 61,500 58,500 (50,400 + 11,100)