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1- A company has $265,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $7,490 credit balance. If the company estimates 6?% of credit sales will be? uncollectible, what will be the amount of the journal entry to record estimated uncollectible? accounts?

A.

$15,900

B.

$7,490

C.

$23,390

D.

$8,410

2-A company has $287,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The Allowance for Doubtful Accounts now has a $2,210 credit balance. If the company estimates that $7,670 of accounts will be uncollectible based on an aging of Accounts? Receivable, what will be the amount of the journal entry to record estimated uncollectible? accounts?

A.

$2,210

B.

7,670

C.

$9,880

D.

$5,460

3-Cypress Co. has given you the following information from its aging of Accounts Receivable. Using this? information, determine the amount of the journal entry to record the estimated uncollectible accounts.

Current	$29,000		22?% uncollectible
31minus?60 days	,100		88?% uncollectible
61minus?90 days	,600		12?% uncollectible
91 and up	,700		18?% uncollectible

The current balance in Allowance for Doubtful Accounts is a

$145

debit.

A.

$58,000

B.

$1,751

C.

$1,606

D.

$1,461

4-Rose Corp. purchased land for $76,000 Additionally, Rose paid title insurance of

$100?, a commission of $7,200 and back taxes due in the amount of $8,000 To ready the land for? construction, Rose paid $5,000 to remove an unwanted? building$1,000 to level and grade the? property, and $7,000 ?

for paving. The cost of the? company's land is? _______, and the land improvements are? _______.

A.

$96,300?;

$12,000

B.

$91,300?;

$13,000

C.

$76,000?;

$28,300

D.

$97,300?;

$7,000

5-A company purchased a computer system on March 1. Its cost was $35,000?, and it had an estimated salvage value of $7,000 It was expected to have a useful life of five years. To the nearest? dollar, the depreciation for year 1 using? straight-line depreciation will? be: (Assume company? year-end is December 31. Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar. Do not convert the useful life of the asset to? months.)

A.

$5,600.

B.

$4,200.

C.

$4,648.

D.

$7,000.

6-A company purchased furniture on January 1. Its cost was $20,000 and it had a residual value of $2,400. Its useful life is determined to be 55 years. Using? double-declining balance? depreciation, the depreciation for year 1 to the nearest dollar will? be

A.

$4,000.

B.

$8,000.

C.

$3,520.

D.

$7,040.

7-Custom Closets purchased office fixtures on January 1. The cost was $14,000?, and the fixtures had a residual value of $3,000 The fixtures were given a useful life of 88 more years and their residual value would still be $3,000. What will be the depreciation under the? straight-line method to the nearest dollar be for the fourth? year?

.

A.

$1,375

B.

$3,438

C.

$1,750

D.

$4,125

8-Ironworks Industries purchased a piece of equipment for $75,000 with an estimated salvage value of $20,000 on January 1. Its estimated life is 55 years. To the nearest? dollar, what is the? equipment's depreciation using? double-declining-balance for year 22?? ?(Round any intermediary calculations to the nearest cent and your final answer to the nearest? dollar.)

A.

$18,000

B.

$11,000

C.

$22,000

D.

$30,000

9-Betta Group purchased? Danio, Inc. for $ $880,000 The market value of? Danio's assets and liabilities at the time of purchase were $960,000 and $320,000 respectively. The journal entry to record this will? include

. A.

debit to Asset accounts for

$960,000?,

credit to Gain on Investments

$80,000

and credit to Cash

$880,000.

B.

debit to Investments for

$960,000?,

credit to Cash

$880,000

and credit to Gain on Investment

$80,000.

C.

$960,000?,

debit to Goodwill

$240,000?,

credit to Liabilities

$320,000

and credit to Cash

$880,000.

D.

debit to Investments for

$880,000?,

credit to Cash

$880,000.

10-TLR Productions pays $200,000 on January 1 to acquire a patent on a new production tool. It is expected that this? patent's useful life will be 88 years. What will the journal entry be to record the first? year's amortization?

A.

Debit Patents

$200,000?,

credit Amortization $200,000

B.

Debit Amortization Expense

$25,000?,

credit Accumulated Amortization $25,000

C.

Debit Amortization Expense

$200,000?, $200,000

D.

Debit Amortization Expense

$25,000?,

credit Patents $25,000

11-Aspen Ore purchased a vein of coal ore for $5,250,000 It is estimated that 35,000,000 tons of ore are available to be extracted. The estimated depletion expense for this? year's extraction of 2,760,000 tons of ore? is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest? dollar.)

A.

$414,000.

B.

$373,400.

C.

$441,600.

D.

$5,250,000.

12-The following is selected data for Bach? Co.:

	2016	2015
Sales	$1,254,495	$1,132,067
Net Income	145,000	120,000
Total Current Assets	178,000	160,000
?Property, Plant and Equipment	568,000	543,000

The fixed asset turnover for 2016? was: (Round your final answer to two decimal? places.)

A.

1.731.73

B.

0.260.26

C.

0.20.2

D.

2.262.26

?13-S&C Roofing had sales on account of $28,500 which were subject to state sales tax of 77?%. The entry to record the sales would be? to:

A.

debit Accounts? Receivable,

$28,500?;

debit Sales tax? payable, $1,995?;

credit Sales? revenue,$30,495.

B.

debit Accounts? Receivable $28,500?;

credit Sales? revenue, $28,500.

C.

debit Accounts? Receivable, $30,495?;

credit Sale? revenue $30,495.

D.

debit Accounts? Receivable, $30,495?;

credit Sales? revenue, $28,500?;

credit Sales tax? payable, $1,995.

14-Tazo Inc. signed a $30,00077?%15-year installment note on December? 1, 2016. The note requires quarterly payments of $500 lus interest on March? 1, June? 1, September? 1, and December 1 of each year. How will Tazo classify this loan on its December? 31, 2016 Balance? Sheet?

?

A.

Current Portion of? Long-term debt,

$1,000?;

?Long-term debt, $29,000

B.

Current Portion of? Long-term debt,

$500?;

?Long-term debt, $29,500

C.

Current Portion of? Long-term debt,

$2,000?;

?Long-term debt, $28,000

D.

Current Portion of? Long-term debt,

$1,500?;

?Long-term debt, $28,500

15-On January? 1, Greene Autos signed a $260,000?, 77?%, 30-year mortgage that requires semiannual payments of$10,423 on June 30 and December 31 of each year. The journal entry to record the first semiannual payment would be? (round interest calculation to the nearest? dollar) to:

A.

debit Mortgage? Payable, $10,423?;

credit? Cash, $10,423.

B.

debit Interest? Expense, $9,100?;

debit Mortgage? Expense, $1,323?;

credit? Cash, $10,423.

C.

debit Interest? Expense, $9,100?;

debit Mortgage? Payable, $1,323?;

credit? Cash, $10,423.

D.

debit Interest? Expense, $1,323?;

debit Mortgage? Payable, $9,100?;

credit? Cash, $10,423.

16-A $170,000 bond issue sold at 96 will? cost: (Round your final answer to the nearest? dollar.)

A.

whatever cost is negotiated.

B.$177,083

C.$170,000

D.$163,200

17-A? $260,000 issue of bonds that sold for? $255,000 matures on June? 25, 2020. The journal entry to record the payment of the bond on the maturity date is? to:

A.

debit? Cash, $255,000; credit Bonds? payable, $255,000.

B.

debit Bonds? payable, $255,000; credit? Cash, $255,000.

C.

debit Bonds? payable, $260,000; credit? Cash, $260,000.

D.

debit? Cash, $260,000; credit Bonds? payable, $260,000.

18- Stella Corp. has the following? liabilities: $30,000 salaries? payable, $70,000 accounts? payable, $180,000 notes payable? (to be made in 10 equal annual? payments), and warranty payable? $22,000 (all of? Stella's products come with a 90minus?day manufacturer? warranty). The total current liabilities? is:

A.

?$122,000

B.

?$100,000

C.

?$140,000

D.

?$302,000

19- Marla? Smith, an employee of Clown? College, earned $110,000 prior to December.? Smith's salary for December is $11,000 For what amount will? Smith's December salary be subject to OASDI tax and HI? tax, respectively

A.

OASDI $11,000?;

HI $8,500

B.

OASDI $11,000?;

HI $11,000

C.

OASDI $8,500?;

HI $8,500

D.

OASDI $8,500?;

HI $11,000

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