Question 75

An asset purchased on January 1 for $80,000 has an estimated residual value of $10,000. The current year's Depreciation Expense is $7,000 and the balance of the Accumulated Depreciation account, after adjustment, is $14,000. If the company uses the straight-line method, what is the asset's remaining useful life?

years

Question 74

Which one of the following statements is true?

Deposits in transit should be deducted from the ending bank balance.

Under the allowance method for uncollectible accounts, bad debts expense is not recorded until a customer defaults.

It is possible for the allowance account to have a debit balance before the year end adjusting entry is recorded.

Under the allowance method for uncollectible accounts, the recovery of an account receivable previously written off results in a credit to the Bad Debt Expense account.

Outstanding cheques should be added to the ending bank balance.

Question 73

The cost of land does not include

title fees.

removal costs of an old building.

closing costs.

annual property taxes.

Question 68

On the adjusted trial balance of Orlando Corporation as at January 31, 2018, the following are some of the account balances (all normal balances): Supplies $740, Prepaid Insurance $1,620, Unearned Revenue $680, Salaries Payable $1,190, Supplies Expense $950, Service Revenue $2,030, Insurance Expense $540, Salaries Expense $1,740. Orlando's year-end is December 31 and its adjusting journal entries are recorded monthly. If the amount in Supplies Expense was recorded in the January 31 adjusting entry, and $650 of supplies was purchased in January, what was the balance in Supplies on January 1?

$_____