Emir Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Emir depreciates its assets under the straight-line method. What are the amounts of depreciation expense during Year 3 and the accumulated depreciation at December 31, Year 3, respectively?
Clayton Company borrowed $7,900 from the State Bank on April…
Clayton Company borrowed $7,900 from the State Bank on April 1, Year 1. The one-year note carried a 25% rate of interest. The amount of interest expense that Clayton would report in Year 1 and Year 2, respectively would be:Note: Final amounts rounded to the nearest dollar.
How will a certified check be shown on a company’s bank reco…
How will a certified check be shown on a company’s bank reconciliation?
What is the name used for the type of secured bond that requ…
What is the name used for the type of secured bond that requires a pledge of a designated piece of property in case of default?
On January 1, Year 2, Kincaid Company’s Accounts Receivable…
On January 1, Year 2, Kincaid Company’s Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $66,800 and $2,000, respectively. During Year 2, Kincaid reported $169,000 of credit sales, wrote off $1,450 of receivables as uncollectible, and collected cash from receivables amounting to $191,100. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.Which of the following describes the effects of writing off the uncollectible accounts?
How does the payment of a previously declared cash dividend…
How does the payment of a previously declared cash dividend affect the financial statements?
Sable Company paid $465,000 for a purchase that included lan…
Sable Company paid $465,000 for a purchase that included land, a building, and equipment. An appraiser estimated the market value of the land to be $100,000, the building to be $350,000, and the equipment to be $50,000. Based on this information, the cost that would be allocated to each of the assets is: LandBuildingEquipmentA.$ 93,000$ 325,500$ 46,500B.$ 100,000$ 350,000$ 50,000C.$ 93,000$ 279,000$ 50,000D.$ 100,000$ 325,500$ 46,500
On July 1, Year 1, Village Bookstore, Incorporated appropria…
On July 1, Year 1, Village Bookstore, Incorporated appropriated retained earnings in the amount of $36,000 for a future remodeling project in the basement of the bookstore. On June 30, Year 1, the balance of Retained Earnings was $82,800 and the Cash balance was $43,200. Which of the following answers shows the effect of the July 1 event on the financial statements? Balance Sheet Statement of Cash FlowsAssets=Liabilities+Stockholders’ EquityIncome StatementCash+Account Receivable=Account Payable+Retained Earnings−Appropriated Retained EarningsRevenue−Expense=Net IncomeA. + = +(36,000)−36,000 − = (36,000) FAB.(36,000)+ = +(36,000)− − = (36,000) FAC. + = + − − = D. + = +(36,000)−36,000 − =
Which of the following statements is correct regarding accou…
Which of the following statements is correct regarding accounting treatment of goodwill?
Helena Corporation declared a 2-for-1 stock split on 8,000 s…
Helena Corporation declared a 2-for-1 stock split on 8,000 shares of $6 par value common stock. If the market price of the stock had been $25 a share before the split, the par value, number of shares, and approximate market value after the split would be: Par ValueNumber of SharesMarket ValueA.$ 6.0016,000$ 12.50B.$ 6.008,000$ 25.00C.$ 3.0016,000$ 12.50D.$ 3.0016,000$ 25.00