The employees of Vintage Clothes achieved all of the sales goals for 2017. Vintage decides to reward the employees with a bonus of

16%

on annual net income, after deducting the bonus. The net income before the calculation of the bonus is

$320,000.

What is the amount of the bonus? (Round your final answer to the nearest dollar.)

A.

$56,470

B.

$8,192

C.

$44,138

D.

$51,200

National Mining Corp. purchased a mine, which holds an estimated

34,000

tons of iron ore, on January 1, 2018, for

$505,000.

The mine is expected to have zero residual value. The business extracted and sold

20,500

tons of ore in 2018 and

14,800

tons of ore in 2019. What is the depletion expense for 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A.

$304,425

B.

$200,475

C.

$219,780

D.

$185,780

On January 1, 2018, Tyson Manufacturing Corporation purchased a machine for

$40,900,000.

Tyson's management expects to use the machine for

33,000

hours over the next six years. The estimated residual value of the machine at the end of the sixth year is

$40,000.

The machine was used for

4,200

hours in 2018 and

5,300

hours in 2019. What is the depreciation expense for 2018 if the corporation uses the

unitsofproduction

method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A.

$5,205,438

B.

$5,200,356

C.

$13,633,333

D.

$6,562,354

Landings Glassware Company issues

$1,042,000

of

14%,

10year

bonds at

97

on February 28, 2019. The bonds pay interest on February 28 and August 31. The journal entry to record the issuance includes a ________.

A.

debit to Cash for $1,042,000

B.

debit to Cash for $1,010,740

C.

credit to Discount on Bonds Payable for $31,260

D.

credit to Bonds Payable for $1,010,740

Mars Corp. had cash sales of

$5,000.

The state sales tax rate is

12.2%.

What amount is debited to the Cash account?

A.

$610

B.

$5,000

C.

$500

D.

$5,610

On December 1, 2018, Garden Products borrowed

$94,000

on a

8%,

8year

note with annual installment payments of

$11,750

plus interest due on December 1 of each subsequent year. Which of the following describes the first installment payment made on December 1, 2019? (Round your answer to the nearest whole number.)

A.

$11,750

principal plus

$940

interest

B.

$7,520

interest only

C.

$11,750

principal plus

$11,750

interest

D.

$11,750

principal plus

$7,520

interest

A photocopier cost

$98,000

when new and has accumulated depreciation of

$90,000.

If the business discards this plant asset, the result is ________.

A.

a loss of $8,000

B.

a gain of $8,000

C.

a loss of

$90,000

D.

no gain or no loss

On January 1, 2019, Commercial Equipment Sales issued

$36,000

in bonds for

$15,700.

These are

sixyear

bonds with a stated interest rate of

9%,

and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the

straightline

method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2019?

A.

$41,140

B.

$1,692

C.

$3,312

D.

$1,620

The information related to interest expense of Classic Music, Inc. is given below:

Net income	$258,000
Income tax expense	108,000
Interest expense	65,000

Based on the above data, which of the following is the

timesinterestearned

ratio? (Round the final answer to two decimal places.)

A.

3.99

times

B.

6.63

times

C.

3.97

times

D.

4.97

times

On January 1, 2018, Sanderson, Inc. acquired a machine for

$1,130,000.

The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be

$113,000.

What is the book value of the machine at the end of 2019 if the company uses the

straightline

method of depreciation?

A.

$723,200

B.

$677,996

C.

$678,000

D.

$610,200

Purple Corporation pays

$500,000

to acquire

42%

of the equity securities of Blue, Inc. on May 5, 2019. In the journal entry to record this transaction ________.

A.

Revenue from Investments will be credited for $500,000

B.

Equity

InvestmentsBlue

Inc. will be credited for $500,000

C.

Common Stock

HoldingsBlue

Inc. will be debited for $500,000

D.

Equity

InvestmentsBlue

Inc. will be debited for $500,000

Marley Investments, Inc. purchased

40%

of the common stock of Beige Corporation on January 1, 2019. Beige Corporation reports a net income of

$700,000

for the 2019 year. Which of the following is the correct journal entry?

A.

Cash	280,000
Revenue from Investments		280,000

B.

Equity InvestmentsBeige Corporation	280,000
Revenue from Investments		280,000

C.

Revenue from Investments	280,000
Cash		280,000

D.

Revenue from Investments	280,000
Equity InvestmentsBeige Corporation		280,000

On April 1, 2019, Orbit Services received

$13,800

in advance of performing the services from a customer for three months of service

April, May and June. What would be the journal entry to adjust the accounts at the end of May? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

A.

Debit Service Revenue

$4,600,

and credit Unearned Revenue

$4,600.

B.

Debit Service Revenue

$9,200,

and credit Accounts Receivable

$9,200.

C.

Debit Unearned Revenue

$13,800,

and credit Service Revenue

$13,800.

D.

Debit Unearned Revenue

$9,200,

and credit Service Revenue

$9,200.

Leonard Technologies invests

$52,000

to acquire

$52,000

face value,

10%,

fiveyear

corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018?

A.

a credit to Interest Revenue for $5,200

B.

a debit to Interest Revenue for $2,600

C.

a credit to Interest Revenue for $2,600

D.

a debit to Interest Revenue for $5,200

A Plus Appliances sells dishwashers with a

fouryear

warranty. In 2019, sales revenue for dishwashers is

$87,000.

The company estimates warranty expense at

4.5%

of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31, 2019? A Plus Applicances began operating in 2019. (Round your final answer to the nearest dollar.)

A.

$3,915

B.

$1,433

C.

$979

D.

$3,071

Fleetwood, Inc. signed a

oneyear

note payable for

$49,000

at

10%

annual interest. What is the interest expense for 2019 if the note was signed on August 1, 2019? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

A.

$14,700

B.

$2,042

C.

$4,900

D.

$2,450

Rambler, Inc. reported sales revenue for 2019 of

$910,000.

The products were sold with a

ninemonth

warranty. Members of Rambler's management estimate that the cost of the warranty will be equal to

9%

of sales revenue. Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?

A.

a debit to Warranty Expense for the actual amount of payments

B.

a debit to Estimated Warranty Payable for $81,900

C.

a debit to Estimated Warranty Payable for the actual amount of payments

D.

a credit to Estimated Warranty Payable for $81,900

The balance in the Bonds Payable account is a credit of

$74,000.

The balance in the Discount on Bonds Payable account is a debit of

$3,050.

What is the bond's carrying amount?

A.

$3,050

B.

$70,950

C.

$74,000

D.

$77,050

Laramie Corporation has acquired a property that included both land and a building for

$530,000.

The corporation hired an appraiser who has determined that the market value of the land is

$300,000

and that of the building is

$470,000.

At what amount should the corporation record the cost of the building? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A.

$365,700

B.

$286,700

C.

$323,300

D.

$265,000