https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A" 16 Exam One Ch 1-4 (Part 1) Saved Help Save & Exit Submit 6 Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and charged the $3,240 premium to Insurance expense. At its December 31, 2021, year-end, Yummy Foods would record which of the following adjusting entries? Multiple Choice Prepaid insurance 2, 565 Insurance expense 2, 565 Prepaid insurance 675 Insurance expense 675 Insurance expense 675 Prepaid insurance 675 Insurance expense 675 Prepaid insurance 2, 565 Insurance payable 3,240 MC Mc 10:49 PM Hill 79"F Clear ~ 9 60426 6/21/2022 Type here to searchhttps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A Exam One Ch 1-4 (Part 1) i Saved Help Save & Exit 21 Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income $261, 000 Income on discontinued operations 67,000 All income statement items are subject to a 25% income tax rate. In its 2021 income statement, Freda's separately stated income tax expense and total income tax expense would be: Multiple Choice $82,000 and $132,000, respectively O $65,250 and $82,000, respectively. O $82,000 and $82,000, respectively. O $82,000 and $65,250, respectively. Mc Graw 79OF Clear ~ 0 6 064 Type here to search Obrowser=08launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A Exam One Ch 1-4 (Part 1) i Saved Help Save Land was acquired in 2021 for a future building site at a cost of $41,100. The assessed valuation for tax purposes is $28,300, a qualified appraiser placed its valu $48,400, and a recent firm offer for the land was for a cash payment of $44,800. The land should be reported in the financial statements at: Skipped Multiple Choice $28,300 $44.800 O $41,100. O $48,400. Prey 1 of 40 Next > Type here to search O 79"F Clear ~ 9 6 2 4 4ms.mheducation.com%252Fmghmiddleware%252... A Exam One Ch 1-4 (Part 1) ) Saved Help Save & 24 Misty Company reported the following before-tax items during the current year: Sales revenue $1, 500 Selling and administrative expenses 800 Restructuring charges 20 Loss on discontinued operations 80 Misty's effective tax rate is 25% What is Misty's income from continuing operations? Multiple Choice O $510 O $525 $590 O $720 Mc 79"F Clear ~9 6241 O Type here to searchIntermediate Accounting . - ACC X - Question 2 - Exam One Ch 1-4 C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddle Exam One Ch 1-4 (Part 1) i Saved 2 Somerset Leasing received $60,000 for 12 months' rent in advance. How should Somerset record this transaction? Multiple Choice Prepaid rent 60,000 Rent expense 160, 000 Cash 60,000 Deferred rent revenue 60,060 Interest expense 60,000 Interest payable 60,000 Salaries expense 60, 000 Salaries payable 60,000Exam One Ch 1-4 (Part 1) i Saved He Cendant Corporation's results for the year ended December 31, 2021, include the following material items: 26 Sales revenue $6, 370, 000 Cost of goods sold 3,800, 060 Selling and administrative expenses 1, 130,000 Loss on sale of investments 181, 000 Loss on discontinued operations 487, 000 Loss on impairment from continuing operations 78, 000 Cendant Corporation's income from continuing operations before income taxes for 2021 is: Multiple Choice O $1,259,000 O $1,181,000. O $1,240,800. O $694,000. MC 79%F Clear ~ 94 Type here to search Ohttps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A" One Ch 1-4 (Part 1) i Saved Help Save & Exit On December 31, 2021, the end of Larry's Used Cars' first year of operations, the accounts receivable was $53,400. The company estimates that $1,700 of the year- end receivables will not be collected. Net accounts receivable in the 2021 balance sheet will be valued at: Multiple Choice $53,400 O $1,700. O $51,700 $55,100. Mc 79.F Clear ~ 960Help Save & Exit 27 On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to GAAP regarding discontinued operations and was properly classified as held for sale on December 31, 2021, the end of the company's fiscal year. The division's loss from operations for 2021 was $1,950,000. The division's book value and fair value less cost to sell on December 31 were $3,040,000 and $2,320,000, respectively. What before-tax amount(s) should the company report as loss on discontinued operations in its 2021 income statement? Multiple Choice O $1,950,000 loss. O $2,670,000 loss. No loss would be reported. O $720,000 impairment loss included in continuing operations and a $1,950,000 loss from discontinued operations. Gray 10:49 PM Type here to search 79"F Clear ~9 6042 6/21/2022Exam One Ch 1-4 (Part 1) i Saved Help Save & Exi Eve's Apples opened its business on January 1, 2021, and paid for two insurance policies effective that date. The policy for equipment damage was $37,260 for 18 months, and the crop damage policy was $12,300 for a two-year term. What is the balance in Eve's prepaid insurance as of December 31, 2021? Multiple Choice $18,570. O $49,560. O $43,290. O $15,495. Hill 10:49 PM CHORO 79"F Clear ~ 9 6 040 6/21/2022 Type here to search Oexternal_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A Exam One Ch 1-4 (Part 1) i Saved Help Save & Exit 7 Mama's Pizza Shoppe borrowed $9,400 at 9% interest on May 1, 2021, with principal and interest due on October 31, 2022. The company's fiscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 2021? Skipped Multiple Choice Interest expense 282 Interest payable 282 No entry Prepaid interest 141 Interest payable 141 O Interest expense 141 Interest payable 141 Graw 79"F Clear ~ 4 04 Type here to search Ohttps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A" xam One Ch 1-4 (Part 1) i Saved Help Save & Exit Sub 29 Schneider Inc. had salaries payable of $60,600 and $90,200 at the end of 2020 and 2021, respectively. During 2021, Schneider recorded $620,300 in salaries expense in its income statement. Cash outflows for salaries in 2021 were: Skipped Multiple Choice O $649,900 $530,100 O $620,300, O $590,700. Mc 10:49 PM Type here to search O 79"F Clear ~962 40 6/21/2022https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252... A to am One Ch 1-4 (Part 1) Saved Help Save & Ex 3 purchase? Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,100 and is expected to sell for $3,200. How should Ace record the Skipped Multiple Choice Inventory 2, 100 Accounts payable 2, 100 Cost of goods sold 2, 106 Deferred sales revenue 1, 106 Sales in advance 3,200 Cost of goods sold 2,100 Inventory payable 2,100 O Cost of goods sold 2, 100 Profit 1, 100 Sales payable 3,200 Gra HILL Mc Graw Hill 79.F Clear ~ 9 Type here to search Oheducation.com%252Fmghmiddleware%252... At Exam One Ch 1-4 (Part 1) i Saved Help Save & Exit 22 On November 1, 2021, Jamison Inc. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated: Operating loss Jan. 1-Dec. 31, 2021 $75 million Estimated operating losses, Jan. 1 to April 30, 2022 80 million Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 17 million In its income statement for the year ended December 31, 2021, Jamison would report a before-tax loss on discontinued operations of: Multiple Choice $75 million. O $138 million O $155 million. O $58 million. Mc Graw 10:49 Hill 79"F Clear ~9 6 240 6/21/2 Type here to search Om One Ch 1-4 (Part 1) Help Save & Exit 10 When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance Additional information for the year ended December 31 is as follows: Prepaid insurance at January 1 $51, 5490 Insurance expense recognized during the year 218, 850 Prepaid insurance at December 31 61, 350 What was the total amount of cash paid by Castle for insurance premiums during the year? Multiple Choice O $209,000 O O 5107350 O 10 41 40 ANDALL raw Type here to search OFCRBROhttps://ezto.mheducation.com/ext/map/index.html?_con=conelexternal_browser=0&launchUrl=https%253A%252F% Exam One Ch 1-4 (Part 1) i 252Fmghmiddleware%252... A" Saved Help Save & Exit Su 5 Carolina Mills purchased $270,000 in supplies this year. The supplies account increased by $18,000 during the year to an ending balance of $57,000. What was supplies expense for Carolina Mills during the year? Skipped Multiple Choice $252,000. O $288,000. O $216,000. O $324,000.