Question

1. A coal mine cost $1,001,000 and is estimated to hold 58,000 tons of coal. There...

1. A coal mine cost $1,001,000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of operations, 5,000 tons are extracted and sold. Calculate depletion per unit. (Round your answer to the nearest cent.)

A. 8.63

B. 4.32

C. 12.94

D. 17.26

2. Industrial Equipment Supply is a new business. During its first year of operations, credit sales were $ 45,000 and collections of credit sales were $36,000. One account, $700, was written off. Management uses the agingminus−ofminus−receivables method to account for bad debts expense and estimated $575 as uncollectible at year end. The ending balance of the Allowance for Bad Debts is ________.

A. 1275

B. 575

C. 650

D. 1350

3. On October 1, 2019, Fashion Jewelers accepted a 5 month, 13% note for $6,500 in settlement of an overdue account receivable. The accounting period ends on December 31. Calculate the accrued interest on the note at December 31, 2019. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A. 423

B. 211

C. 845

D. 352

4. Masonry Construction Group paid $9,000 for a plant asset that had a market value of $15,500. At which of the following amounts should the plant asset be recorded?  

A. 18000

B. 4500

C. 9000

D. 15500

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.

Depletion per unit = Cost of coal mine/Number of units available

= 1,001,000/58,000

= $17.26

Correct option is (D)

2.

One account, $700, was written off during the year. Management estimated $575 as uncollectible at year end. Hence, the ending balance of the Allowance for Bad Debts is $1275 (700 + 575)

Hence, correct option is (A)

3.

Interest accrued on note = Note amount x Interest % x Time period

= 6,500 x 13% x 3/12

= $211

Correct option is (B)

4.

Masonry Construction Group paid $9,000 for a plant asset that had a market value of $15,500. Plant asset should be recorded in the books of accounts at $9,000 i.e. purchase price. Assets are recorded in the books at the price paid to acquire them. Hence, plant asset should be recorded at $9,000 and not the market value of $15,500

Correct option is (C)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A coal mine in Alaska cost $1,000,000 and is estimated to hold 10,000 tons of coal....
A coal mine in Alaska cost $1,000,000 and is estimated to hold 10,000 tons of coal. There is no residual value. 2,000 tons are extracted and sold during the first year of operations. Calculate depletion expense for the first year. $100,000 $150,000 $200,000 $20,000
Exercise 11-9 Presented below is information related to Riverbed Manufacturing Corporation. Asset Cost Estimated Salvage Estimated...
Exercise 11-9 Presented below is information related to Riverbed Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $44,550 $6,050 10 B $36,960 5,280 9 C 39,600 3,960 9 D 20,900 1,650 7 E 25,850 2,750 6 1. Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate ________________% 2. Prepare the adjusting entry necessary at the end of the...
1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $72000. If...
1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $72000. If the balance of the Allowance for Doubtful Accounts is an $14400 debit before adjustment, what is the balance after adjustment? A. $72000 B. $14400 C. $86400 D. $57600 2. In reviewing the accounts receivable, the cash receivable value is $25400 before the write-off of a $1800 account. What is the cash receivable value after the write-off? A. $25400 B. $1800 C. $27200 D. $23600...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct types of cost to a manufacturer are direct materials, direct labor, and manufacturing overhead.                       3. Sales Returns and Allowances is a contra-asset account. 4. Like sales revenue, cost of goods sold represents an inflow of assets. 5. With the periodic inventory system the inventory account is updated after each sale or purchase. 6. When merchandise is sold FOB shipping point, the buyer is responsible...
Question 5 A plant site donated by a township to a manufacturer that plans to open...
Question 5 A plant site donated by a township to a manufacturer that plans to open a new factory should be recorded on the manufacturer's books at ___________. Question 5 options: A. the nominal cost of taking title to it i B. Its fair value C. one dollar (since the site cost nothing but should be included in the balance sheet) D. the value assigned to it by the company's directors Question 6 Which of the following costs are capitalized...
1.An obligation of a business that represents the claims of others against the assets of he...
1.An obligation of a business that represents the claims of others against the assets of he business is called a(n) * A.asset B.liability C.expense D.revenue E.equity 2.The general journal provides a place for recording * A.the amount of each debit and credit B.an explanation of the transaction C.the transaction date D.the names of the accounts involved E.All of these 3.An exchange of economic consideration between two parties that causes a change in assets, liabilities or equity is called * A.prepaid...
ABC Company is preparing its 2018 financial statements. Income from Continuing Operations (ICO) for 2018 was...
ABC Company is preparing its 2018 financial statements. Income from Continuing Operations (ICO) for 2018 was determined to be $1,800,000, but upon further review, ABC's accountant is not certain this number is accurate. ABC has a corporate tax rate of 30%. Additionally, the company reports one year of financial data on the face of the financial statements. Use the following information to determine the adjustments, if any, to correctly report Income From Continuing Operations. 1. During 2018, ABC experienced a...
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts...
On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts Receivable 9,900 Allowance for Doubtful Accounts $100 Inventory 17,750 Supplies 1,400 Land 9,000 Buildings and Equipment 42,000 Accumulated Depreciation 4,200 Accounts Payable 10,700 Common Stock 20,000 Retained Earnings (1/1/2016) 42,400 Dividends 2,000 Sales Revenue 69,700 Cost of Goods Sold 36,860 Salaries Expense 12,500 Advertising Expense 8,100 Other Expenses 4,500 During the month of December, Davis entered into the following transactions: Date Transaction Dec. 4...
Exam 2 Softbyte Inc. Balance Sheet December 31, 2012 Assets Cash $500,000 Accounts Receivable 700,000 Inventory...
Exam 2 Softbyte Inc. Balance Sheet December 31, 2012 Assets Cash $500,000 Accounts Receivable 700,000 Inventory 300,000 Property, Plant & Equipment 900,000 Accumulated Depreciation (100,000) Total Assets $2,300,000 Liabilities & Equity Accounts Payable $300,000 Notes Payable 1,000,000 Common Stock 500,000 Retained Earnings 500,000 Total Liabilities & Equity $2,300,000 Instructions: Open the balances in the T-accounts (general ledger). Post the journal entries to the T-accounts (general ledger). Prepare an income statement, statement of retained earnings, balance sheet, and statement of cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT