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16.

Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined.

$1,233,100.

$1,358,500.

$1,300,000.

$1,180,000.

$1,280,000.

18.

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

Debit interest expense, $0; credit interest payable, $0.

Debit interest payable, $120; credit interest expense, $120.

Debit interest expense, $120; credit interest payable, $120.

Debit interest expense, $720; credit interest payable, $720.

Debit interest payable, $240; credit interest expense, $240.

24.

Plant assets are defined as:

Tangible assets that have a useful life of more than one accounting period and are used in the operation of a business.

Current assets.

Held for sale.

Intangible assets used in the operations of a business that have a useful life of more than one accounting period.

Tangible assets used in the operation of business that have a useful life of less than one accounting period.

29.

A corporation issued 100 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

A $1,800 credit to Common Stock.

A $300 debit to Organization Expenses.

A $1,300 credit to Paid-in Capital in Excess of Par Value, Common Stock.

A $1,800 debit to Legal Expenses.

A $1,800 credit to Cash.

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