1, On January 1, a machine with a useful life of five years and a salvage value of $20000 was purchased for $160000. What is the depreciation expense for year 2 under straight-line depreciation?
$28000.
$19200.
$96000.
$76800.
2, Ayayai Corp. bought equipment on January 1, 2022. The equipment cost $470000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is
$70000.
$400000.
$470000.
$66667.
3, Crane Company purchases land for $130000 cash. Crane assumes $4900 in property taxes due on the land. The title and attorney fees totaled $2100. Crane has the land graded for $4000. They paid $17000 for paving of a parking lot. What amount does Crane record as the cost for the land?
$158000.
$130000.
$136100.
$141000.
4, Equipment with a cost of $750600 has an estimated salvage value of $45000 and an estimated life of 4 years or 16800 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 4200 hours?
$176400.
$187650.
$192650.
$198900.
5,Whispering Winds Corp. purchased a delivery van with a $52000 list price. The company was given a $4200 cash discount by the dealer and paid $2700 sales tax. Annual insurance on the van is $1400. As a result of the purchase, by how much will Whispering Winds Corp. increase its van account?
$47800.
$50500.
$50600.
$52000.
6, On January 1, 2020, Wildhorse 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.
7, A cash register tape shows cash sales of $7500 and sales taxes of $375. The journal entry to record this information is
Cash 7875
Sales Revenue 7500
Sales Taxes Payable 375
Cash 7875
Sales Tax Revenue 375
Sales Revenue 7500
Cash 7500
Sales Revenue 7500
Cash 7500
Sales Tax Expense 375
Sales Revenue 7875
8, Bonds with a face value of $672000 and a quoted price of 98.5 have a selling price of
$658594.
$660240.
$661920.
$658896.
9,
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Five thousand bonds with a face value of $2000 each, are sold at 104. The entry to record the issuance is
Cash 10400000
Discount on Bonds Payable 400000
Bonds Payable 10000000
Cash 10400000
Premium on Bonds Payable 400000
Bonds Payable 10000000
Cash 10000000
Premium on Bonds Payable 400000
Bonds Payable 10400000
Cash 10400000
Bonds Payable 10400000
10, Pharoah Company received proceeds of $935000 on 10-year, 5% bonds issued on January 1, 2019. The bonds had a face value of $992000, pay interest annually on December 31, and have a call price of 103. Pharoah uses the straight-line method of amortization. What is the amount of interest Pharoah must pay the bondholders in 2019?
$46750
$55300
$43900
$49600