Question
Typewriter Plus purchased equipment for $40,000 on September 30, 2019. The equipment has a residual value of $8,000 and estimated life of 8 years. Calculate
Typewriter Plus purchased equipment for $40,000 on September 30, 2019. The equipment has a residual value of $8,000 and estimated life of 8 years. Calculate the net book value of the equipment on December 31, 2020.
Multiple Choice
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$32,000
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$28,000
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$35,000
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$36,000
Which of the following statements about debits is false?
Multiple Choice
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Debits increase assets.
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Debits decrease stockholders equity.
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Debits increase liabilities.
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Debits decrease liabilities.
Elephant Company calculated depreciation per year of $8,000 on a building it purchased on January 1, 2019. How much accumulated depreciation will appear in the December 31, 2020 financial statements?
Multiple Choice
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$12,000
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$24,000
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$16,000
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$8,000
Kettle Company received but did not pay its electric bill. What journal entry should Kettle Company record?
Multiple Choice
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Debit utilities expense and credit utilities payable
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Debit utilities expense and credit cash
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Debit utilities payable and credit cash
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Debit utilities payable and credit utilities expense
If a company debits an expense account, what impact does that have on stockholders equity?
Multiple Choice
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Decreases stockholders equity
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Increases stockholders equity
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There is no effect on stockholders equity
A transaction has been recorded in the T-accounts of Gibbs Company as follows:
Cash 1,500 Unearned Revenue 1,500 Which of the following could be an explanation for this transaction?
Multiple Choice
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Gibbs has received cash for services to be provided in the future.
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Gibbs has provided services to a customer on account.
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Gibbs has completed services for which they had earlier received cash in advance.
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Cash has been paid out to a company that will provide future services to Gibbs Company.
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