60.1K

Verified Solution

Link Copied!

Please solve all

CK Co. has net credit sales of $400,000 at the end of the year. They estimate uncollectible accounts to be 2% of net credit sales. Before any adjustments to their allowance for doubtful accounts for the current year, the unadjusted balance in this account was a debit of $1,500. What is the balance of the allowance for doubtful accounts after the adjusting entry is posted? Select one: a. $9,500 credit O b. $6,500 credit. Oc $8,000 credit. O d. $1,500 credit. Mind Med Ltd. purchased equipment for $290,500 cash. Shipping and testing of the equipment is $1,500. Cannabis purchases a 1-year insurance policy on the equipment for $25,000. What amount does Cannabis Medical record as the cost for the equipment? Select one: O a. $290,500 Ob $317,000 O c. $315,500 O d. $292,000 Equipment with a cost of $160,000, an estimated residual value of $10,000, and an estimated life of 4 years, was purchased on April 1, 2018. Year end is December 31, 2018. If the straight-line method is used, the depreciation expense for 2018 is : Select one: O a $40,000 ob. $30,000 OC. $37.500 Od $28,125 On January 1, 2018, ACME Corp. purchased equipment for $60,000. It is expected to last 5 years, after which it will be sold for $5,000. It is also expected to be used for a total of 10,000 machine hours. The equipment was used for 750 hours during the year ended December 31, 2018. The depreciation expense for 2018 using the units-of-production method will be: Select one: O a $4,500 O b. $4,125 OC. $11,000 od. $12,250 Podkolzin Corp. acquired a 10 year, 5%, 150,000 mortgage payable to finance the construction of a hockey school on January 1, Year 1. If semi-annual payments are required on June 30th and December 31st of each year, what is the interest expense that we would record on December 31st Year 1 assuming a fixed principal payment of $7,500 / payment? Select one: O a $3,563 Ob $3,750 OC. $7,500 Od $3,686

Answer & Explanation Solved by verified expert

See Answer