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

Which of the following statements is true regarding aging accounts receivable?

On January 1, Year 1, Residence Company issued bonds with a $64,000 face value. The bonds were issued at face value. They had a 20-year term and a stated rate of interest of 7%. Which of the following shows how the bond issue will affect Residence’s financial statements on January 1, Year 1? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA. = + − = (64,000) IAB. = + − = (64,000) FAC.64,000=64,000+ − = 64,000 FAD.(64,000)=(64,000)+ − = (64,000) IA

At the end of the accounting period, Houston Company had $12,000 of common stock, paid-in capital in excess of par value–common of $11,000, retained earnings of $12,000, and $4,000 of treasury stock. What is the total amount of stockholders’ equity?

What is the effect of recognizing $7,500 of uncollectible accounts expense under the direct write-off method?

Which of the following intangible assets does not convey a specific legal right or privilege?

Regardless of the specific type of long-term debt, which of the following is normally an expectation with regards to debt transactions?