1. Brandon Company completed an aging of its accounts receivable…
1. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. 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 uncollectable accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the estimate of aging receivables as its method of estimating uncollectable accounts? A. $4,250 B. $5,525 C. $5,067 D. $7,159Submitted: 9 years ago.Category: Business and Finance Homework
2. Which marketable securities are reported at cost on the balance sheet date?
A. Trading and held-to-maturity securities
B. Held-to-maturity securities
C. Available-for-sale securities
D. Trading securities
3. 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 1,760,000 tons of ore (rounded to the nearest dollar) is
4. 4. 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
A. ($55,000/$95,000) × $150,000.
B. ($55,000/$150,000) × $125,000.
C. ($55,000/$95,000) × $125,000.
D. ($55,000/$125,000) × $150,000.
5. Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $50 and a bank collection of $760 in Casey Company's behalf. Casey's book balance should be adjusted by a total of
6. Which of the following would be considered a contingent liability?
A. Pending legal action
B. Mortgage obligation
C. Sales tax obligation
D. Accounts payable obligation
7. Which of the following would be considered a cash equivalent?
B. Money orders
D. Time deposits
8. If a $6,000, 10%, 10-year bond was issued at 104 on October 1, 2011, how much interest will accrue on December 31 if interest payments are made annually?
9. A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $0. The journal entry to record this transaction is
A. debit Loss on Disposal $6,000, debit Accumulated Depreciation— Truck for $50,000, and credit Truck for $56,000.
B. debit Truck for $50,000, debit Loss on Disposal for $6,000 and credit Accumulated Depreciation— Truck for $56,000.
C. debit Accumulated Depreciation— Truck for $50,000 and credit Truck for $50,000.
D. debit Truck for $56,000, credit Accumulated Depreciation— Truck for $50,000, and credit Gain on Disposal for $6,000
10. Mackey Company has a five-year mortgage for $100,000. In the first year of the mortgage, Mackey will report this liability as a
A. current liability of $100,000.
B. current liability of $80,000 and a long-term liability of $20,000.
C. long-term liability of $100,000.
D. current liability of $20,000 and a long-term liability of $80,000
11. Cash equivalents are
A. not liquid and carry little risk.
B. very liquid and carry high risk.
C. not liquid and carry high risk.
D. very liquid and carry little risk.
12. A patent has amortization this year of $2,300. The journal entry would be
A. debit Amortization Expense— Patent, $2,300; credit Accumulated Depreciation— Patent, $2,300.
B. debit Accumulated Amortization— Patent, $2,300; credit Amortization Expense— Patent, $2,300.
C. debit Amortization Expense—Patent, $2,300; credit Patent, $2,300.
D. debit Accumulated Amortization— Patent, $2,300; credit Patent, $2,300.
13. Amanda Industries had total assets of $600,000; total liabilities of $175,000; and total stockholders' equity of $425,000. Amanda Industries' debt ratio is
14. Use the _______ principle to estimate warranty liabilities.
15. Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production method will be
16. A $400,000 issue of bonds that sold for $363,000 matures on August 1, 2015. The journal entry to record the payment of the bond on the maturity date is
A. debit bonds payable, $400,000; credit cash, $400,000.
B. debit cash, $400,000; credit bonds payable, $400,000.
C. debit bonds payable, $363,000; credit cash, $363,000.
D. debit cash, $363,000; credit bonds payable, $363,000.
17. Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (rounded to the nearest cent)
18. Taylor Company has given you the following information from its aging of accounts receivable. The current amount in the allowance for doubtful accounts is a $958 credit.
Current $24,400 2% uncollectible
31–60 days 7,350 8% uncollectible
61–90 days 3,380 15% uncollectible
91 and up 1,220 30% uncollectible
Using this information, what is the amount of the journal entry to record the allowance for doubtful accounts?
19. A company purchased furniture on January 1, 2012. Its cost was $15,600, and it had a 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
20. Which of the following would indicate poor internal control over accounts receivable?
A. The person handling cash receipts passes the receipts to someone who enters them into accounts receivable.
B. The person who handles accounts receivable wouldn't write off accounts as uncollectable.
C. The same person handling cash receipts also records the accounts receivable transactions.
D. The mailroom employees open the mail and give the cash receipts to another employee.