Expert Answers

1- A company purchased furniture on January 1, 2012. Its cost was $ 15.600, and has residual value of $1.600. Its useful life is determined to be three years. Using double-declining balance depreciation , the depreciation for 2012 to the nearest dollar will be

2- A truck costing $56.000 has accumulated depreciation of $50.000. The truck is scrapped for $500. The journal entry to record this transaction is

 

3- Using a 365-day year , the maturity value of a 180-day note for $2700 at 9% annual interest is [rounded to the nearest cent]

4- Mar a customer of Tammy Company. The company wrote off her account of $1200 on August 15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstate her account?

5- A company receives a note payable for $3500 at 9% for 45 days. How much interests [to the nearest cent] will the customer owe using a 360-day year?

6- Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6342. The credit sales for the period are $85.000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectible accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the percent of credit sales as its method of estimating uncollectible accounts?

7- Ryan Corporation made a basket purchase of three items. Item A was appraised at $35.000; Item B was appraised at $55.000; and Item C was appraised at $60.000. The purchase price was $125.000. The amount at which Item B should be recorded is

8- If the amount extracted from a coal mine was different every year for four years, you would?

9- Brandon Corporation purchased a vein of mineral ore for $3.250.000. It is estimated that 15.000.000 tons of ore are available to be extracted. The salvage value is determined to be $400.000. The estimation depletion expense for this year’s extraction of 1.7600.000 tons of ore [rounded to the nearest dollar] is?

 

10- Brandon Company had extraordinary losses of $150.000. If its corporate tax rate is 30% at which amount will the losses be shown on the income statement?

11- Casey Company has a $2.400 credit balance in Paid-In Capital—Treasury Stock. It sells 500 shares of treasury stock that the company reacquired at $21/share, for $18/share. After the transaction, what will the balance be in the Paid-In Capital in Excess of Par—Treasury account ?

12- Isaiah Corporations Accounts Receivable increased by $35.000, and its Accounts Payable decreased by $18.000. What is the net effect on cash from operations under the indirect method?

13- Net sales at Kelly’s Bakery increased from $40.000 to $60.000, and the cost of goods sold increased from $20.000 to $40.000. Vertical analysis based on net sales would show which percentages for cost of goods sold [rounded to the nearest %]

14- Casey Corporation reported net income of $35.000; depreciation expenses of $20.000; an increase in accounts payable of $2.000; and an increase in current notes receivable of $3.000. Net cash flows from operating activities under indirect method is

15- Casey Company has an accounts receivable turnover of 36 days, an inventory turnover of 77 days, and accounts payable turnover of 40 days. Casey’s cycle ——- day[s].

16- Rick Company has declared a $40.000 cash divided to shareholders. The company has 5.000 shares of $20 par, 6% preferred stock, and 10.000 shares of $15 par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $12.000 in arrears?

17- Tammy Corporation has 350,000 shares of $3 par common stock outstanding. It has declared a 5% stock divided. The current market price of the common stock is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is

18- Cost of goods for the year was $850,000. Inventory was $60.000 at the beginning of the year and $90.000 at the end of the year. There were no changes in the amount in accounts payable for the year. Cash payments for merchandise to be reported under the direct method is

19- Tammy Corporation has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60.000. Net credit sales are $250.000. Tammy accounts receivable turnover rate is

20- Rick Company has declared a $40.000 cash dividend to shareholders. The company has 5.000 shares of $20 par, 6% preferred stock, and 10.000 shares of $15 par common stock. The preferred stock is noncumulative. How much will be distributed to the preferred and common stockholders on the date of payment?

21- If Ricks net sales increased from $40.000 to $80.000 and its operating expenses increased from $30.000 to $ 50.000, then vertical analysis based on net sales would show which of the following for operating expenses for the two periods [to the nearest tenth of a percent] ?

22- What is the rate of return on stockholders equity if sales are $100.000, net income is $22.700, and average common stockholders equity is $86.000?

23- Which section of the income statement does not report net of income tax savings?

24- Operating expenses—other then depreciation—for the year were $335.000. Prepaid expenses decreased by $7.000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be?

25- If current assets were $100.000 in 2009 and $88.000 in 2010, what was the amount of increase or decrease in percentage terms from 2009 to 2010 ?[round to the nearest percent]

26- If total assets are $6.000, what is the common-size figure of cash, assuming that cash has a balance of $2.400?

27- You’re thinking of refinancing a 10 unit-apartment building. You need $110.000 to pay off your private lender and settle some remodeling costs. To meet the required 80% loan-to-value ratio for the bank, your property appraisal must come in at a minimum of what amount?

28- The Amanda Corporation Stockholders Equity section includes the following information;

Preferred stock $12.000

Paid-in-Capital in excess of par—preferred 2.700

Common stock 15.000

Paid-in capital in excess of par—common 4.100

Retained earnings 8.200

What was the total selling price of the preferred stock?

29-The Isaiah Corporation stockholders equity section includes the following information;

Preferred stock $22.000

Paid-in-capital in excess of par—preferred 2.980

Common stock 48.000

Paid-in capital in excess of par—common 3.400

Retained earnings 7.350

Total par value of the preferred and common stock is?