Which of the following assets would be classified as an intangible asset?

Select one:

a. Patent

b. Equipment

c. Delivery Vehicle

Property, plant, and equipment are conventionally presented in the balance sheet at

Select one:

a. original cost less residual value

b. original cost less accumulated depreciation

c. fair value less residual value

d. fair value less book value

Karr Corporation received cash of $7,200 on August 1, 20x8 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 20x8 adjusting entry is

Select one:

a. Debit Rent Revenue and credit Unearned Rent, $3,000

b. Debit Rent Revenue and credit Unearned Rent, $4,200

c. Debit Unearned Rent and credit Rent Revenue, $3,000

d. Debit Unearned Rent and credit Rent Revenue, $4,200

Baker Corp.'s liability account balances at June 30, 20x2 included a 10 percent note payable in the amount of $1,000,000. The note is dated October 1, 20x0 and interest is payable each October 1. The first interest payment was made on October 1, 20x1. In Baker's June 30, 20x2 balance sheet, what amount should be reported as accrued interest payable for this note?

Select one:

a. $ 37,500

b. $ 66,667

c. $ 75,000

d. $ 112,500

BQ Ltd. sells merchandise to a customer for $10,000, accepting $2,000 cash and an $8,000, 60-day note receivable. BQ Ltd. sets selling prices so that the cost of goods sold is always equal to 30% of sales. Which of the following correctly describes the effect of this sale on the accounting equation? Assume that BQ uses a perpetual system.

Select one:

a. Increase assets $10,000; no effect on liabilities; increase equity $10,000

b. Increase assets $5,000; decrease liabilities $2,000; increase equity $7,000

c. Increase assets $8,000; increase liabilities $2,000; increase equity $10,000

d. Increase assets $7,000; no effect on liabilities; increase equity $7,000

A companys bookkeeper incorrectly recorded the receipt of a $480 cheque, received in settlement of an accounts receivable, as a receipt of $840. The error was found when the bank account was reconciled at month end. How would the error be dealt with at the end of the month?

Select one:

a. $360 addition to the balance per bank in the bank reconciliation

b. $360 deduction from the balance per bank in the bank reconciliation

c. $360 addition to the balance per books

d. $360 deduction from the balance per books

On January 1, 20x6, a company had office supplies on hand of $4,200. During 20x6, it purchased additional office supplies for $68,200. At December 31, 20x6 there is $6,400 of office supplies remaining on hand. What is the companys office supplies expense for 20x6?

Select one:

a. $6,400

b. $66,000

c. $68,200

d. $70,400

On September 1, 20x4, a company borrowed $600,000 from the bank at an interest rate of 6%. The repayment schedule calls for annual payments of $100,000 plus interest commencing on August 31, 20x5. What is the balance in the note payable account as at December 31, 20x7?

Select one:

a. $100,000

b. $200,000

c. $300,000

d. $306,000