Chapter 9

QUESTION 1

On January 1, Year 1, Pearson Moving Company paid $46,000 cash to purchase a truck. The truck was expected to have an eight-year useful life and an $4,900 salvage value. If Pearson uses the straight-line method, the amount of accumulated depreciation recognized on the Year 3 balance sheet is $_______

QUESTION 2

As part of a major renovation at the beginning of the year, Atlases Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 9 years old for $774 cash. The shelves originally cost $2,247 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $599. When recording the sale, the debit to accumulated depreciation will be $______

QUESTION 3

Uber Inc purchased a car for $23,600. The car has a salvage value of $1,800 and is estimated to be in use for 100,000 miles. What is the depreciation expense for Year 3 assuming mileage used in year 1 was 16,460, year 2 was 15,880, and year 3 was 19,310? $_______

QUESTION 4

Bridge City Consulting bought a building and the land on which it is located for $420,600 cash. The building is estimated to represent 63 percent of the purchase price. The company paid $97,050 for building renovations before it was ready for use. When preparing the journal entry to record all expenditures related to the purchase and renovation, the debit to land would be $________

QUESTION 5

Duncan Company purchased a machine that cost $29,026, has an estimated residual value of $4,832, and has an estimated useful life of 5 years. Using the double declining balance method, what is the depreciation expense for year 2?

Chapter 10

QUESTION 1

Assume on December 1, 2017, a company borrows funds to purchase equipment. The company will make the following principal payments:

2018, $5,200

2019, $3,400

2020, $2,207

2021, $1,434

On December 31, 2018, the total liabilities will be $______

QUESTION 2

Big Three Co issue its $73,000 bonds at a price of 107 the company will debit cash for $_______________

QUESTION 3

Pearson Co issue its $168,200 at a price of 104, the stated rate is 8%, the bond term is 4 years, and the market rate is 5%. Assume the term of the bonds is 4 years. Using the straight-line method of amortization, the interest expense in the 1st year will be $_____

QUESTION 4

Dirk Company completed the salary and wage payroll for March. The payroll provided the following details:

Salaries and wages earned $60,795

Employee income taxes withheld $13,217

FICA taxes withheld $5,413

Unemployment taxes $2,909

When recording the payroll, what is the debit to payroll tax expense?

QUESTION 5

Pearson Co issue its $145,000 at a price of 96, the stated rate is 5%, the bond term is 4 years, and the market rate is 9%. Assume the term of the bonds is 4 years. Using the effective interest method, the interest expense in the 1st year will be $_____

Chapter 11

QUESTION 1

Evan Corporation charter authorized the following capital stock:

Preferred stock: 8 percent, par $10, authorized 10,000 shares.

Common stock: par $1.7, authorized 50,000 shares.

Since inception, Skyhawk sold 5,822 shares of the common stock at $6.6per share and 2,705 shares of the preferred stock at $15. The ending retained earnings was $81,768 On the statement of stockholders' equity, the total stockholders' equity would be reported as $_____

QUESTION 2

Emma Systems, Inc. declared and issued a 7 percent stock dividend. The company has 720,000 shares authorized and 44,198 outstanding. The par value of the stock is $2.35 per share and the market value is $6 per share. To record the stock dividend, the debit to Retained Earnings would be $_______

QUESTION 3

Emma Consulting had previously purchased 3,001 shares of treasury stock for $6 per share. Emma then sold 1,240 shares of the treasury stock for $11 per share. The credit to treasury stock to record the sale would be $_________

QUESTION 4

Huxley Company has 356,019 shares of common stock authorized, 218,157 issued, and 75,546 shares of treasury stock. The companys board of directors declares a dividend of $0.38 per share of common stock. What is the total amount of the dividend that will be paid? Round your answer to the nearest dollar

QUESTION 5

Ava Consulting issued 1,400 shares of previously unissued common stock with a par value of $3. The selling price for the stock was $8 per share. The credit to Additional Paid in Capital - Common Stock would be $_________

QUESTION 6

Shepherd Companys Stockholders equity is as follows:

Common Stock, $ 3 par $14,671

Additional PIC 26,421

Treasury Stock, $ 8 $ 4,640

How many treasury shares are owned by the company? Round to a whole number