RST Incorporated purchased 15,000 shares of its $2 par value common stock on September 23, 2018, for $24 per share.  They plan to hold these shares in treasury.  RST sold 10,000 of these shares on January 10, 2019, for $22 per share.  Which of the following is true regarding the sale on January 10, 2019?

ABC Ltd. uses the periodic inventory system and provided the following data: Date Units Cost Per Unit 1/2 Beginning Inventory 120 $80 4/3 Purchase 150 $85 5/9 Sale 175 9/18 Purchase 140 $86 10/17 Sale 180 11/5 Purchase 120 $88 What is Cost of Goods Sold using the FIFO cost flow assumption?

XYZ Unlimited purchased a machine for $63,000 on July 1, year 1. The machine had an estimated life of 6 years; estimated residual value of $3,000. XYZ sold the machine on December 31, year 4 for a sales price of $25,000. What was the gain or loss on the sale of the machine? XYZ uses the calendar year as its fiscal year and straight-line depreciation.

Alden Trucking Company purchased some trucks from Kenworthy Co. by issuing an installment note for $37,908,000 on January 1, 2018. The note agreement requires Alden to pay $10 million annually, starting on December 31, 2018 and continuing for a total of four more years (final payment December 31, 2022). Kenworthy charges the market interest rate of 10%. After the first payment was made on December 31, 2018, what was the installment note liability for the trucks on Alden’s books? (Round to the nearest dollar).

Evergreen Corp. failed to record rent expense for the last 6 months of the year that was prepaid at the beginning of the same year.  Which of the following is true regarding the effects of this error?

The Standard Company’s analysis of its inventory revealed that the net realizable value is $340,000 whereas the current amount in the Inventory account shows $365,000. What is the effect of the required writedown of inventory on the year-end financial statements? 

What is the definition of Goodwill?

Graystone Advertising’s accountant noted the following items in the review of December’s activity. What is the proper amount of expenses that should be recorded in the calendar year-end financial statements? The $700 electric bill for December was received by the end of the month and will be paid in January. The $3,000 rent for January was paid on December 31. Sales employees earned $2,000 in commissions based on December sales, however the commissions will not be paid until January. At the beginning of November, Graystone paid $2,100 for insurance coverage for November through January.

A company provided the following data: sales, $150,000; sales returns, $8,000; ending inventory, $40,000; net purchases of inventory, $85,000; and gross profit, $37,000. What was the amount of beginning inventory?

On July 1, ABC Company purchased a building for $1,243,000 and uses the 200% declining-balance depreciation method. The estimated residual value of the building is $155,000 and it has an expected useful life of 10 years. What is the building’s book value at the end of year 2 if ABC uses a December 31, year-end?