Project #24234 - Accounting HW

Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 cash. The entry to record this event would include a

 

gain of $40,000.

 

credit to the Equipment account for $220,000.

 

credit to Accumulated Depreciation for $200,000.

 

loss of $40,000.

A machine with a cost of $480,000 has an estimated salvage value of $30,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

 

$160,000

 

$150,000

 

$90,000

 

$130,000

Sargent Corporation bought equipment on January 1, 2014. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. TAssuming straight-line deprecation, the book value of the equipment at the beginning of the third year would be

 

$150,000.

 

$100,000.

 

$260,000.

 

$360,000

On November 1, Gentle Company received a $3,000, 6%, three-month note receivable. The cash to be received by Gentle Company when the note becomes due is:

 

$3,180.

 

$3,045.

 

$3,030.

 

$3,000.

Kill Corporation's unadjusted trial balance includes the following balances (assume normal balances):

Accounts Receivable

 

$

850,000

Allowance for Doubtful Accounts

   

15,000

Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debt expense will the company record?

 

$36,000

 

$50,100

 

$51,000

 

$15,000

Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and credit sales are $2,700,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debts expense?

 

Bad Debt Expense

 

27,000

   
 

Allowance for Doubtful Accounts

     

27,000

           

 

Bad Debt Expense

 

27,000

   
 

Accounts Receivable

     

27,000

           

 

Bad Debt Expense

 

33,000

   
 

Accounts Receivable

     

33,000

           

 

Bad Debt Expense

 

33,000

   
 

Allowance for Doubtful Accounts

     

33,000

           

Under the allowance method of accounting for uncollectible accounts,

 

The cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.

 

Allowance for Doubtful Accounts is closed each year to Income Summary.

 

The cash realizable value of accounts receivable is greater before an account is written off than after it is written off.

 

Bad Debt Expense is debited when a specific account is written off as uncollectible.

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

 

$5,000

 

$2,900

 

$2,940

 

$3,000

The cash account shows a balance of $90,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customer’s check for $640 was returned because it was NSF. A customer’s check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $192. The correct balance in the cash account was

 

$96,634.

 

$91,634.

 

$91,580.

 

$92,400

 

Subject Mathematics
Due By (Pacific Time) 03/04/2014 10:00 am
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