Reference no: EM132769949

Questions - Can you tell us what kind of plant assets are used in your company or place of business? Do you have an estimate of the amount invested in those plant assets?

Q1. On January 1, a machine with a useful life of five years and a salvage value of $20000 was purchased for $270000. What is the depreciation expense for year 2 under straight-line depreciation?

$50000.

$162000.

$32400.

$129600.

Q2. Whispering Winds Corp. bought equipment on January 1, 2022. The equipment cost $410000 and had an expected salvage value of $45000. The life of the equipment was estimated to be 5 years. The depreciable cost of the equipment is

$410000.

$365000.

$45000.

$73000.

Q3. Ivanhoe Company purchases land for $195000 cash. Ivanhoe assumes $5600 in property taxes due on the land. The title and attorney fees totaled $1900. Ivanhoe has the land graded for $3400. They paid $19000 for paving of a parking lot. What amount does Ivanhoe record as the cost for the land?

$195000.

$205900.

$224900.

$200300.

Q4. Equipment with a cost of $850600 has an estimated salvage value of $25000 and an estimated life of 4 years or 19200 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 for 4800 hours?

$212650.

$206400.

$218900.

$217650.

Q5. Indigo Corporation purchased a delivery van with a $68000 list price. The company was given a $4400 cash discount by the dealer and paid $2800 sales tax. Annual insurance on the van is $1200. As a result of the purchase, by how much will Indigo Corporation increase its van account?

$63600.

$66800.

$68000.

$66400.

Q6. On January 1, 2020, Wild horse Co., a calendar-year company, issued $2360000 of notes payable, of which $590000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Long-term debt, $2360000.

Current liabilities, $590000; Long-term Debt, $1770000.

Current liabilities, $590000; Long-term Debt, $1180000.

Current liabilities, $2360000.

Q7. A cash register tape shows cash sales of $7500 and sales taxes of $375. The journal entry to record this information is

Cash7500

Sales Tax Expense375 Sales Revenue 7875

Cash7500

Sales Revenue 7500

Cash7875

Sales Tax Revenue 375 Sales Revenue 7500

Cash7875

Sales Revenue 7500

Sales Taxes Payable 375

Bonds with a face value of $480000 and a quoted price of 98.5 have a selling price of

$472800.

$470640.

$470424.

$471600.

Q8. Five thousand bonds with a face value of $1000 each, are sold at 108. The entry to record the issuance is

Cash5000000 Premium on Bonds Payable400000 Bonds Payable 5400000

Cash5400000 Premium on Bonds Payable 400000 Bonds Payable 5000000

Cash5400000 Discount on Bonds Payable 400000 Bonds Payable 5000000

Cash5400000

Bonds Payable5400000

Q9. Cullumber Company received proceeds of $844000 on 10-year, 5% bonds issued on January 1, 2019. The bonds had a face value of $896000, pay interest annually on December 31, and have a call price of 102. Cullumber uses the straight-line method of amortization. What is the amount of interest Cullumber must pay the bondholders in 2019?

$39600

$42200

$50000

$44800