Question

Johnson Co. purchased land and a building for $90,000. The land was appraised at $30,000 and the building on the land was appraised at $70,000. Based on the appraisals, how much of the $90,000 cost should be allocated to the land?

		a. $30,000
		b. 27,500
		c. $$27,000
		d. $25,000

Which of the following would not be charged (debited) to the Vehicles account for the cost of a used car purchase?

		a. tax, title, and registration costs incurred prior to putting the car in use
		b. the purchase price of the car
		c. the cost of an oil change after the car has been in use at our business for 3,000 miles
		d. the cost of having pre-existing bumper damage repaired before putting the car in use

Additions and Betterments are typically charged (debited) to the asset's accumulated depreciation account.

		a. True
		b. False

Jones Co. borrowed $15,000 from the bank on September 30, issuing the bank a 6% note due on December 29. The entry to record accrued interest on the note on October 31 (31 days after the note was made) would include (use a 365-day year):

		a. a credit to Interest Payable for $76.44
		b. a credit to Interest Payable for $221.92
		c. a credit to Interest Expense for $76.44
		d. a debit to Interest Expense for $221.92

Answer 1

answers to the above questions are given in number wise please check it.