Reference no: EM13574524
1. Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 2,100 hours?
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$19,000
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$21,000
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$22,000
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$30,000
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2. The following data were gathered to use in reconciling the bank account of Savannah Company:
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Balance per bank
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$16,750
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Balance per company records
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16,125
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Bank service charges
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80
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Deposit in transit
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2,195
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NSF check
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950
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Outstanding checks
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3,850
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3. What is the adjusted balance on the bank reconcilition?
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$14,470
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$10,705
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$15,095
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$15,720
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4. Xtra Company purchased goodwill from Argus for $96,000. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?
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$7,000
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$ 8,000
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Goodwill is not amortized.
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Not enough information.
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5. Xtra Company purchased goodwill from Argus for $96,000. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?
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$7,000
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$ 8,000
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Goodwill is not amortized.
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Not enough information.
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6. As part of the initial investment, Omar contributes accounts receivable that had a balance of $22,500 in the accounts of a sole proprietorship. Of this amount, $2,000 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $1,500. The amount debited to Accounts Receivable for the new partnership is
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$19,000
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$22,500
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$21,000
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$20,500
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7. In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?
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direct write-off method
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percentage of sales method
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Analysis of receivables method
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both (b) and (c)
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8. Jackson and Campbell have capital balances of $100,000 and $300,000 respectively. Jackson devotes full time and Campbell one-half time to the business. Determine the division of $150,000 of net income in ratio of time devoted to business.
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$75,000 and $75,000
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$37,500 and $112,500
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$100,000 and $50,000
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$112,500 and $37,500
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9. The direct write-off method of accounting for uncollectible accounts
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emphasizes balance sheet relationships.
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is often used by small companies and companies with few receivables.
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emphasizes cash realizable value.
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emphasizes the matching of expenses with revenues.
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