Reference no: EM132744296
Questions -
Q1. What is the total cost of land if the purchase price was 150,000, the cost to demolish an old building is $50,000, the architect fees for a new building are $10,000 and the new building costs $200,000?
Q2. Accounts Receivable is 120,000, Sales are $60,000, balance in the Allowance for Doubtful Accounts is a credit of $900, and the % of uncollectible credit sales is 5%. If a company is using the Allowance method, and the Balance Sheet method, what would be the adjusting entry needed to account for uncollectible accounts?
a. Credit to Bad Debt Expense and debit to Allowance for Doubtful Accounts for $6,000
b. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $2,100
c. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $5,100
d. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $6,000
Q3. Accounts Receivable is 120,000, Sales are $60,000, balance in the Allowance for Doubtful Accounts is a credit of $900, and the % of uncollectible credit sales is 5%. If a company is using the Allowance method, and the Income Statement method, what would be the adjusting entry needed to account for uncollectible accounts?
a. Credit to Bad Debt Expense and debit to Allowance for Doubtful Accounts for $3,000.
b. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $2,100.
c. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $6,000.
d. Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts for $3,000.
Q4. At the end of the day, the cash register's record shows $1,050, but the count of cash in the cash register is $1,055. There was $0 cash in the drawer at the beginning of the day. The correct entry to record the cash sales is:
a. Debit Cash $1,050; credit Sales $1050.
b. Debit Cash $1,055; credit Cash Over and Short $5; credit Sales $1,050
c. Debit Cash $1,050; debit Cash Over and Short $5; credit Sales $1,055
d. Debit Cash $1,055; Credit Sales $1,055.
Q5. Depreciation is higher in the first few years and gets lower as time goes on when using the straight-line method.
a. True
b. False