2 points
2 points
2 points
A company sells a plant asset which originally cost $210000 for $70000 on December 31 2014. The Accumulated Depreciation account had a balance of $84000 after the current year’s depreciation of $21000 had been recorded. The company should recognize a
$140000 loss.
$56000 gain.
$56000 loss.
$35000 loss.
2 points
A company purchased factory equipment on April 1 2014 for $80000. It is estimated that the equipment will have a $10000 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 2014 is
$8000.
$7000.
$5250.
$6000.
2 points
A cash register tape shows cash sales of $2000 and sales taxes of $160. The journal entry to record this information is
2 points
2 points
2 points
A company purchased factory equipment for $350000. It is estimated that the equipment will have a $35000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation the amount of annual depreciation recorded for the second year after purchase would be
$140000.
$84000.
$126000.
$60480.
2 points
The following totals for the month of April were taken from the payroll register of Noll Company.
The entry to record the net payroll would include a
credit to Cash for $15900.
credit to Salaries Payable for $16504.
credit to Salaries Payable for $15900.
credit to Salaries Payable for $17000.
2 points
A current liability
is usually paid within one year.
is always paid after one year.
is always paid within one year.
must be paid within 30 days.
2 points
2 points
2 points
A factory machine was purchased for $90000 on January 1 2014. It was estimated that it would have a $18000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40000 hours in the 5 years. The company ran the machine for 4000 actual hours in 2014. If the company uses the units-of-activity method of depreciation the amount of depreciation expense for 2014 would be
$9000.
$14400.
$18000.
$7200.
2 points
All of the following are examples of Intangible Assets except:
a patent.
goodwill.
a copyright.
Oil wells.
2 points
2 points
The following totals for the month of April were taken from the payroll register of Noll Company.
The journal entry to record the gross salaries would include a
credit to Salaries Payable for $24000.
debit to Salaries Expense for $24000.
debit to Salaries Expense for $17000.
debit to Salaries Payable for $24000.
2 points
2 points
2 points
Indicate whether each of the following expenditures should be classified as land (L) land improvements (LI) buildings (B) equipment (E) or none of these (X).
Parking lots
Electricity used by a machine
Filling and grading of the land
Architect fees
Cost of trial runs for machinery
Insurance on the machine while in transit
Construction costs of a new building
Fences
Annual insurance on the building
Cost of tearing down a building on the land to get it ready for a new building
E
L
LI
X
B