Question (I): Select a single answer that best completes the statement or answers the question. (21 Marks) 4. A company purchased office equipment for $200,000 and estimated a residual value of $40,000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is a. 20% b. 25% c. 40%. d. 4%, 2. The depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is a. straight-line. b. units-of-activity. c. declining-balance. d. none of these answer choices are correct. 3. The depreciable cost of a plant asset is its original cost minus obsolescence. a. True b. False 4. In calculating depreciation, both plant asset cost and useful life are based on estimates. a True b. False 5. Admire County Bank agrees to lend ABC $800,000 on January 1. ABC Company signs a $800,000,8%,9-month note. The entry made by ABC Company on January 1 to record the proceeds and issuance of the note is a The income statement and statement of financial position columus of Reed Company's worksheet reflect the following totals; :The net income (or loss) for the period is a. $45,000 income. b. $13,000 income. c. $13,000 loss. d. not determinable. 8. The Supplies account appears in which of the following debit columns of the worksheet? a. Trial balance b. Adjusted trial balance c. Statement of financial position d. All of these answer choices are correct. Use the following data, taken from the adjusted trial balance, for 9 and 10 448 9. What amount will be reflected for Retained Earnings in the Statement of Financial Position columns of the worksheet? a. 1,996 b. 1,760 c. El,696 d. 62,060 12. What will be the total of the Statement of Financial Position credit column? a. 14,224 b. 10,160 c. 13,988 d. 10,396 11. As interest is accrued on an interest-bearing note, the Interest Expense account is a. increased; the Notes Payable account is increased. b. increased; the Notes Payable account is decreased. c. increased; the Interest Payable account is increased. d. decreased; the Interest Payable account is increased. 12. ABC Company purchased equipment and these costs were ABC will record the acquisition cost of the equipment as a. $27,500. b. $29,300. c. $29,620. d. $30,050. 13. The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the a. direct write-off method. b. percentage of receivables basis. c. percentage of sales basis. d. percentage of receivables and percentage of sales basis. 14. A note payable must always be paid before an account payable. a. True b. False A. Duriug December 2019,ABC sold 3,000 12-month anmual magazine subscriptions at a rate of 530 each. The first issaes were mailed in Febrangy 2020. Prepare the entries ABC s books to recerd the sale of the subscriptions and the mailing of the ferst issues, (4 Marks) B. Using the percentage of receivables method for recarding bad debts expense, estimated uncollectible accounts ane 1500,000. If the balance of the Allowance for Doabyful Accournts is YT00,000 debit before adjustment, what is the entry adjwatment? (4 Mfirks) c. On December I, ABC Corporation barrowed $20,000 an a 90 day, 6% note. Prepare the eutries to necord the issuance of the note, the acernal of interest at year end, and the pasment of the note. (8 Marks) D. The adjusted account balances of ABC at October 31 are as follows: (Is Marks) Requierd; Prepare the end of the period closing entries for the ABC
