Return to page 13 Question 13 (1 point) On December 31, 2020, Peligrino Co. has a long term note payable of $800,000. Of that balance, $100,000 will be paid within one year from the balance sheet date. How much of the note payable should Peligrino Co. report as a non-current liability when they prepare the December 31. 2020 balance sheet? a. Nothing Disclose in a note to the financial statements, b. $1,000,000 c. $900,000 d. $800,000 e. $ 700,000 Return to page 14 Question 14 point) SportsWorld purchased property for a building site. The costs associated with the property were: Purchase Price $175,000 Real Estate Commissions $15,000 Legal Fees $800 Expense of clearing land 52,000 Expense to remove old building $1,000 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building a $190,800 to Land: 53,000 to Building b. 5192,800 to Land: $1,000 to Building 5193,800 to Land: 50 to Building d. 5150,000 to Land: 518,800 to Building Return to page 18 Question 15 O Of ek S Instructions - READ ME!! x + ssignment/4664310050/assessment 3 Return to page Question 3 (1 point) On December 31 of the current year, TechCom's unadjusted trial balance included the following items: Accounts Receivable, debit balance of $107.250; Allowance for Doubtful Accounts, credit balance of $1,900. What amount should be debited to Bad Debt Expense, assuming 6% of outstanding accounts receivable as of December 31 of the current year, are estimated to be uncollectible? a. $4,535 b. $8,335 c. $2,835 d. $6,435 Return to page 4 Question 4 (1 point) Esplanade Outdoor Co. estimates that warranty expense will be 54 of sales. The current period's sales were $1,740,000. The entry to record the warranty expense is Warranty Expense 87,000 Sales 87,000 b. Estimated Warranty Liability 87.000 Sales 87.000 Estimated Warranty Liability 87.000 Warranty Expense 87.000 Warranty Expense 87.000 Estimated Warranty Ciability 87000 Return to page Question 5 Esplanade Outdoor Do estimates that warranty expense will osales. The current periodales were 14000) O O Instructions - READ ME! + inment/4664310050/assessment Return to page 5 Question 5(1 point) Esplanade Outdoor Co. estimates that warranty expense will be 5% of sales. The current period's sales were $1,740,000. The entry to record the warranty expense is a. Warranty Expense 87,000 Sales 87,000 b. Warranty Expense 87.000 Estimated Warranty Liability 87.000 c. Estimated Warranty Liability 87.000 Cash 87,000 d. Estimated Warranty Liability 87.000 Warranty Expense 87,000 Return to page 6 Question 6 (1 point) Property, plant and equipment are a. Intangible assets used in the operations of a business having a useful life of more than one accounting period b. Tangible assets used in the operation of a business having a useful life of more than one accounting period c. Tangible assets used in the operation of business having a useful life of less than one accounting period d. Current assets D Return to page Question 7 point Which of the following entries would be made to write off an uncollectible account recevable in the dect worthod OG ment/4664310050/assessment Return to page Question 1 (1 point) A credit sale of $2,500 to a customer would result in a. A credit to Sales and a credit to the customer's account in the Accounts Receivable Ledger b. A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the Accounts Receivable Ledger c. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the Accounts Receivable Ledger d. A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the Accounts Receivable Ledger Return to page 2 Question 2 (1 point) Long-term liabilities a are obligations of a company not requiring payment within one year b. are obligations requiring payment within one year or less. Careliabilities arising from future events. d. are sometimes reported on the income statement Return to page 3 Question 31 point On December 31 of the current year, TechCom's unadjusted trial balance includied the following items Accounts Receivable debit balance of $107.250: Allowance for Doubtful Accounts, credit balance of $1.000 What amount should be debited to Bad Debt Expense assuming 6 of outstanding accounts receivable as of December 21 of the current year, are estimated to be uncollectible? b. 58,335 c. 52.835 Return to page 19 Question 19 (1 point) SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year, 95,000 units were produced. In the second year, production increased to 111,000 units. Using the units of production method, what is the amount of depreciation that should be recorded for the second year? a. $26,640 b. 549,440 c. $22,800 d. 536,000 Return to page 20 Question 20 (1 point) On August 1. Droid Co. borrowed $80.000 from Simple Financial The loan had an interest rate of 7% and was due in 60 days. Prepare the journal entry for Droid Co to record the note a. DR: Note Recewable $80,000 CR: Cash $80,000 b. DR: Cash 580,000 CR: Note Receivable 580,000 DR: Cash $80.000 CR Note Payable 580,000 d. DR Note Payable 580,000 CR: Cash $80,000 Return to page 21 Question 21 point TechCom ages its accounts receivables to determine the end of the period adjustment for bad debts. At the end of the management estimated that $12.750 of the accounts receivable balances would be uncollectible The Allowance for Doct Account $175. What entry should Techcombe at the end of the year for the estimated bad tehti espere 45 T005U/assessment Return to page Question 9 (1 point) Hook Co. signed a $12,000, 120-day, 5% interest-bearing note payable at the bank in exchange for cash. Which of the following journal entries should Hook Co. use to record the note? a. Cash 12,000 Accounts Payable 12,000 b. Notes Payable 12,132 Interest Expense 132 Cash 12,000 c Notes Payable 12,000 Cash 12.132 Interest Expense 132 d. Cash 12,000 Notes Payable 12,000 Return to page 10 Question 10 (1 point) A debit memo enclosed with the bank statement shows that the bank paid a note on behalf of the account holder. it would decrease the bank statement balance. 3 True False Return to page 11 Question 11 point When originally purchased, a vehicle had cost 123.000, with an estimated residual value of 1500 and an estimated to con 4 years of straight line depreciation, the estimated useful life was revised from a to 5 years, but with me expende in years should be 5265750 Return to page 7 Question 7 (1 point) Which of the following entries would be made to write off an uncollectible account receivable using the direct write-off method? a. Dr. Sales Cr. Accounts receivable b. Dr. Sales Cr. Allowance for doubtful accounts c.Dr. Bad debt expense Cr. Accounts receivable d. Dr. Allowance for doubtful accounts Cr. Accounts receivable Return to page 8 Question 8 (1 point) Cheque #47 was written and recorded by the bank as $753. The business recorded the cheque as $735. It was a company error. This error would result in a decrease in general ledger balance. True False Return to page 9 Question 911 point) Hook Co. signed a 512,000, 120-day, 5% interest-bearing note payable at the barik In exchange for cash. Which of the following journal entries should Hook Co. use to record the note? a Cash 12,000 Accounts Payable 12.000 b. Notes Payable 12,132 Interest Expense 132 Cash 12,000 c. Notes Payable 12,000 Cash 12. 132 Interest Expense 132 signment/4664310050/assessment Return to page 13 Question 13 (1 point) On December 31, 2020, Peligrino Co. has a long term note payable of $300,000. Of that balance, $100,000 will be paid within one year from the balance sheet date. How much of the note payable should Peligrino Co. report as a non-current liability when they prepare the Decernber 31, 2020 balance sheet? a. Nothing, Disclose in a note to the financial statements. b. $1,000,000 c. $900,000 d. $800,000 e. $700,000 Return to page 14 Question 14(1 point) Sports World purchased property for a building site. The costs associated with the property were Purchase Price $175,000 Real Estate Commissions $15,000 Legal Fees $800 Expense of clearing land $2,000 Expense to remove old building $1.000 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building a, 5190,800 to Land: 53,000 to Building b. 5192,800 to Land, $1,000 to Building 5193,800 to Land: 50 to Building d. 5150,000 to Land: 518,800 to Building Return to age 15 Question 15 O Week 5 Instructions - READ ME!! X + n/assignment/4664310050/assessment Return to page 15 Question 15 (1 point) On June 14, Multi Sports received a 90-day note payable from Single Sport, instead of cash payment of an overdue account. The amount of the note was $45,000 at an interest rate of 10%. What is the total amount of interest for the note? a. 974.23 b. 1109.59 c. 1024.15 d. 1153.25 Return to page 16 Question 16 (1 point) During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is used to account for bad debts? a Decrease in net income decrease in total assets b. Decrease in net income, no effect on total assets c. No effect on net income or on total assets d. No effect on net income: decrease in total assets Return to page 17 Question 17 11 point) The characteristics of a liability indude b.existence of a present obligation aliability can be current or concurrent O FI Week 5 Instructions - READ ME!! + w/assignment/4664310050/assessment Return to page 17 Question 17 (1 point) The characteristics of a liability include a. all of these b. existence of a present obligation. ca liability can be current or noncurrent d. requirement of future payment of assets or rendering of services. e. occurrence of a past transaction or event. Return to page 18 Question 18 (1 point Cash receipts placed in the bank's night depository after banking hours were not included on the bank statement prepared on the same date it will be treated as outstanding cheques. True False Return to page 19 Question 19 point) SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10.000 SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year 95,000 units were produced in the second year, production increased to 111,000 units. Using the units-of-production method what is the amount of depreciation that should be recorded for the second year? D.149,440 ssignment/4664310050/assessment Return to Question 23 (1 point) Hook Co. signed a $12,000, 120-day, 5% interest-bearing note payable at the bank in exchange for cash. Which of the following jour should Hook Co. use to record the note? a. Cash 12,000 Accounts Payable 12,000 b. Cash 12,132 Interest Expense 132 Notes Payable 12,000 C. Notes Payable 12,000 Cash 12,132 Interest Expense 132 d. Cash 12.000 Notes Payable 12,000 Return to Question 24 (1 point) Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is a. Debit Cash Over and Short for 562 b. Credit Cash Over and Short for 162 c Credit Cash for $62 d. Debit Petty Cash for $62 e. Debit Cash for $62 Return to Question 25 Unearned revenue another name for sales vente ment/4664310050/assessment Return to page 21 Question 21 (1 point) TechCom ages its accounts receivables to determine the end of the period adjustment for bad debts. At the end of the year, management estimated that $12,750 of the accounts receivable balances would be uncollectible. The Allowance for Doubtful Accounts had a debit balance of $175. What entry should TechCom make at the end of the year, for the estimated bad debts expense? a. Accounts Receivable 12,750 Bad Debts Expense 175 Sales 12,925 b. Bad Debts Expense 12,925 Allowance for Doubtful Accounts 12,925 c. Bad Debts Expense 12.750 Allowance for Doubtful Accounts 12,750 d. Accounts Receivable 12.925 Allowance for Doubtful Accounts 12,925 Return to page 22 Question 22 (1 point) Voltarin Co purchased a machine for $625,000 on November 2, 2019. The company expects the machine to last for 10 years or 50,000 hours of operation, with an estimated residual value of $15,000. During 2019 the computer was operated for 3,000 hours, while in 2020 it was operated for 2.600 hours. Calculate the depreciation expense for the computer for 2019 and 2020 using the following depreciation methods taj Double-declining balance a. 2019: 5135,000 and 2020: 5 100,000 6. 2019:5100,000 and 2020: 5125.000 5000 and 2020 10.000 d. 2019: $115.000 and 20201 3100,000 C OF G nment/4664310050/assessment Return to page 22 Question 22 (1 point) Voltarin Co purchased a machine for $625,000 on November 2. 2019. The company expects the machine to last for 10 years or 50,000 hours of operation, with an estimated residual value of $15.000. During 2019 the computer was operated for 3,000 hours, while in 2020 it was operated for 2,600 hours. Calculate the depreciation expense for the computer for 2019 and 2020 using the following depreciation methods: (a) Double-declining balance a. 2019: $135,000 and 2020: $100,000 b. 2019: $100,000 and 2020: $125,000 c. 2019: $125.000 and 2020: $100,000 d. 2019: $115,000 and 2020: $100,000 Return to page 23 Question 23 (1 point) Hock Co. signed a $12,000, 120-day, 54 interest-bearing note payable at the bank in exchange for cash. Which of the following journal entries should Hook Co. use to record the note? Cash 12.000 Accounts Payable 12,000 b. Cash 12,132 Interest Expense 132 Notes Payable 12,000 Notes Payable 12.000 Cash 12,132 Interest Expense 132 o O Hent/4664310050/assessment Return to page Question 11 (1 point) When originally purchased, a vehicle had cost $23,000, with an estimated residual value of $1,500, and an estimated useful life of 8 years. 4 years of straight-line depreciation, the estimated useful life was revised from 8 to 6 years, but with zero residual value. The depreciation expense in year 5 should be a. $2,856.25 b. $2.687.50 C. $6,125.00 d. $10,750.00 Return to page 15 Question 12(1 point) Cash equivalents a. Include short-term investments purchased to increase earnings b. Are readily convertible to a known cash amount and include short-term investments purchased to increase earnings c. All of the above d. Are often combined with cash as a single balance sheet item e. Are readily convertible to a known cash amount Return to page 13 Question 13(1 point On December 31, 2020, Peligrino Co has a long term note payable of $800,000. Of that balance $100.000 will be paid within one year from the balance sheet date. How much of the note payable should Peligrino Co report as a non current liability when they prepare the December 31 2020 balance sheet? a. Nothing, Disclose in a note to the financial statements, 6.51000,000 OF d. Cash 12,000 Notes Payable 12,000 Question 24 (1 point) Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is a. Debit Cash Over and Short for $62 b. Credit Cash Over and Short for 562 c. Credit Cash for $62 d. Debit Petty Cash for $62 e. Debit Cash for $62 Question 25 1 point) Unearned revenue is another name for sales revenue. True False Submit Back Support | Schoology Blog | PRIV