11) Rosewood Company made a loan of $16,000 to one of the company's employees on April...

 

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11) Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? 11)_ A) $960 in Year 1 and $0 in Year 2 C) $0 in Year 1 and $960 in Year 2 B) $720 in Year 1 and $240 in Year 2 D) $240 in Year 1 and $720 in Year 2 12) The accounting records of the Harris and Schubert Companies contained the following account balances: Accounts receivable $ 60,000 40,000 Harris Schubert Sales $ 300,000 180,000 Which of the following statements is true? 12). A) The company with the higher accounts receivable turnover ratio will also have the longer average number of days to collect accounts receivable. B) Schubert Company has a lower likelihood of lost income resulting from credit costs. C) The average number of days to collect accounts receivable for Harris is 73 days. D) The accounts receivable for Schubert Company turns over 6 times each year. 13) Which of the following terms is used to describe the process of expense recognition for property, plant and equipment? 13). A) Depletion B) Revision C) Depreciation D) Amortization [The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000. 14) What value will be recorded for the building? 14). A) $950,000 B) $800,000 C) $1,100,000 D) $175,000 15) Anchor Company purchased a manufacturing machine with a list price of $160,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $2,400. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,600 for the first year of operations. What is the cost of the machine? 15) A) $165,800 B) $156,800 C) $162,200 D) $159,200 11) Rosewood Company made a loan of $16,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively? 11)_ A) $960 in Year 1 and $0 in Year 2 C) $0 in Year 1 and $960 in Year 2 B) $720 in Year 1 and $240 in Year 2 D) $240 in Year 1 and $720 in Year 2 12) The accounting records of the Harris and Schubert Companies contained the following account balances: Accounts receivable $ 60,000 40,000 Harris Schubert Sales $ 300,000 180,000 Which of the following statements is true? 12). A) The company with the higher accounts receivable turnover ratio will also have the longer average number of days to collect accounts receivable. B) Schubert Company has a lower likelihood of lost income resulting from credit costs. C) The average number of days to collect accounts receivable for Harris is 73 days. D) The accounts receivable for Schubert Company turns over 6 times each year. 13) Which of the following terms is used to describe the process of expense recognition for property, plant and equipment? 13). A) Depletion B) Revision C) Depreciation D) Amortization [The following information applies to the questions displayed below.] Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000. 14) What value will be recorded for the building? 14). A) $950,000 B) $800,000 C) $1,100,000 D) $175,000 15) Anchor Company purchased a manufacturing machine with a list price of $160,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $2,400. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,600 for the first year of operations. What is the cost of the machine? 15) A) $165,800 B) $156,800 C) $162,200 D) $159,200

Answer rating: 100% (QA)

11 B 720 in year 1 and 240 in year 2 Explanation 16000 006 12 80 Year 1 80 9 720 Year 2 80 3 240 12 ... View the full answer