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Posted: March 2nd, 2023
A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest
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cent) will the customer owe using a 360-day year?
A. $39.38
B. $38.84
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C. $354.38
D. $315.00
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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
A. $33,350.
B. $35,500.
C. $36,250.
D. $31,250.
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 Truck for $50,000, debit Loss on Disposal for $6,000 and credit Accumulated Depreciation— Truck for $56,000.
B. debit Truck for $56,000, credit Accumulated Depreciation— Truck for $50,000, and credit Gain on Disposal for $6,000.
C. debit Loss on Disposal $6,000, debit Accumulated Depreciation— Truck for $50,000, and credit Truck for $56,000.
D. debit Accumulated Depreciation— Truck for $50,000 and credit Truck for $50,000.
Nick Company has cash of $33,000; net accounts receivable of $41,000; short-term investments of
$15,000; and inventory of $25,000. It also has $30,000 in current liabilities and $50,000 in long-term
liabilities. The quick ratio for Nick Company is
A. 1.78.
B. 2.97.
C. 3.80.
D. 3.30.
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 C should be recorded (rounded to the nearest dollar) is
A. $83,300.
B. $50,000
C. $72,000.
D. $29,167.
A $400,000 issue of bonds that sold for $363,000 matures on August 1, 2015 - Research Paper Writing Help Service. The journal entry to
record the payment of the bond on the maturity date is
A. debit bonds payable, $363,000; credit cash, $363,000.
B. debit bonds payable, $400,000; credit cash, $400,000.
C. debit cash, $400,000; credit bonds payable, $400,000.
D. debit cash, $363,000; credit bonds payable, $363,000.
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. $5,067
C. $7,159
D. $5,525
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) × $125,000.
B. ($55,000/$95,000) × $150,000.
C. ($55,000/$125,000) × $150,000.
D. ($55,000/$150,000) × $125,000.
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?
A. $104
B. $150
C. $500
D. None
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