On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $1,005,000. The appraised values of the assets are $72,000 for the land, $1,000,000 for the building and $208,000 for equipment. Phillips uses the double-declining-balance method for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. What is the depreciation expense for the equipment for Year 1?Note: Round your intermediate calculations to 4 decimal places.

During the year, Todd Corporation issued 200 shares of $20 par value common stock for $50 a share. A total of 500 shares were authorized. In addition, the company purchased 75 shares of treasury stock at $44 a share. Which of the following best presents the related lines in the stockholders’ equity section of the company’s balance sheet?

A review of the bank statement and accounting records of Blake Company revealed the following items: Item NumberDescription1)Three outstanding checks2)A debit memo showing a bank service charge3)A deposit in transit4)A NSF check written by one of Blake’s customers5)A certified check written by Blake that remains outstanding6)A credit memo reflecting interest revenue earned by Blake Which of the item(s) would be subtracted from the company’s unadjusted book balance to determine the true cash balance?

Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $76,500 and $5,800, respectively. During Year 2, the company wrote off $4,640 in uncollectible accounts. In preparation for the company’s estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past DueReceivables Amount% Likely to be UncollectibleCurrent$ 104,0001%0 to 3045,0005%31 to 609,92010%61 to 904,44025%Over 903,80050%Total$ 167,160 What amount will be reported as uncollectible accounts expense on the Year 2 income statement?

What is meant by the term “double taxation”?

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 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 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 $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 $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?