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 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 reconciliation?

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 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 affect the financial statements?

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 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 accounting treatment of goodwill?

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