Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year’s depreciation would affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(32,000)= +(32,000) −32,000=(32,000)(32,000) Operating activityB.(16,000)= +(16,000) −16,000=(16,000) C.(36,000)= +(36,000) −36,000=(36,000)(36,000) Operating activityD.(36,000)= +(36,000) −36,000=(36,000)
How does the amortization of the principal balance on an ins…
How does the amortization of the principal balance on an installment note payable affect the amount of interest expense recorded each succeeding year?
Rosewood Company made a loan of $11,400 to one of the compan…
Rosewood Company made a loan of $11,400 to one of the company’s employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively?
On January 1, Year 1, the Accounts Receivable balance was $3…
On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,800. On January 15, Year 1, an $800 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?
At the time of liquidation, Owens Company reported assets of…
At the time of liquidation, Owens Company reported assets of $360,000, liabilities of $220,000, common stock of $170,000 and retained earnings of $(30,000). What amount of the company’s assets are the shareholders entitled to receive?
Peterson Company’s petty cash fund was established on Januar…
Peterson Company’s petty cash fund was established on January 1 with $500. On January 31, a count of the fund revealed: $105 in cash remaining and vouchers for miscellaneous expenses totaling $400. If the company records both the disbursements and the replenishments to the fund, what is the overall effect on Peterson’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(400)= +(400) −400=(400)(395) OAB.(400)= +(400) −400=(400)(400) OAC.(500)= +(500) −500=(500)(500) FAD.(395)= +(395)5−400=(395)(395) OA
Which of the following statements is a reason why a company…
Which of the following statements is a reason why a company would buy treasury stock?
On January 1, Year 1, Hardwick Company purchased a truck tha…
On January 1, Year 1, Hardwick Company purchased a truck that cost $53,000. The company expected to drive the truck 200,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $3,000. If the truck is driven 30,000 miles during Year 1, what would be the amount of depreciation expense for the year?
Curtain Company paid dividends of $6,000, $12,000, and $20,0…
Curtain Company paid dividends of $6,000, $12,000, and $20,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,000 shares of 5%, $200 par value preferred stock outstanding that paid a cumulative dividend. What is the total amount of dividends paid to common shareholders during Year 3?
Which of the following is a contra equity account?
Which of the following is a contra equity account?