80.2K

Verified Solution

Link Copied!

30. A company purchased factory equipment on April 1, 2018 for $80,000. It is estimated that the equipment will have an $8,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2018 is (watch dates) A) $8,000. B) $6,000. C) S5,400. D) S7,500. 31. Revenue that has been received but not earned is A) accrued revenue. B) accrued expense. C) prepaid expense. D) unearned revenue. 32. In a double entry system when recording an accounting transaction, A) there must only be two accounts affected by any transaction. B) the dollar amount of the debits must equal the dollar amount of the credits. C) the number of debit accounts must equal the number of credit accounts. D) there must always be entries made on both sides of the accounting equation. 33. All of the following statements about the post-closing trial balance are correct except it A) provides evidence that the journalizing and posting of closing entries have been properly completed. B) proves that all transactions have been recorded. shows that the accounting equation is in balance. D) contains only permanent accounts. 34. Purple Company purchased merchandise from Black Company with freight terms of FOB destination. The freight costs will be paid by the A) buver and the seller. B) seller. C) buyer. D) transportation company. 25. When you allocate the original cost of a lixed asset to expense over its useful life, vou are A) making up entries. B) recording depreciation. C) managing income. D) closing accounts. 36. A current liability is a debt that can reasonably be expected to be paid A) out of cash currently on hand. B) within one year or the operating cycle, whichever is longer. C) between 6 months and 18 months out of currently recognized revenues. D) 37. An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment A) debit to Bad Debts Expense for $2,800. credit to Allowance for Doubtful Accounts for S4,000. to record bad debts for the period will require a C) debit to Allowance for Doubtful Accounts for S2,800. debit to Bad Debts Expense for S4,000

Answer & Explanation Solved by verified expert

See Answer